07.02.202218:09 Forex-elemzések és áttekintések: Bitcoin: S&P 500 index correlation and another potential driver for growth

Correlation with the stock market for bitcoin is a double-edged sword. Despite all the bearish fears, the main cryptocurrency rose on Friday, and today it passed the $40,000 - $42,000 zone per coin.

Analytics firm Santiment tweeted that Bitcoin could continue to rise if the S&P 500 rises on Monday.

Since the beginning of the year, it has become clear that bitcoin has become closely correlated with the traditional stock market. Santiment emphasized that "Bitcoin has an incredibly close tie to the volatile S&P 500," and traders are keeping a close eye on this index, expecting that if it goes up, the major cryptocurrency will follow.

BTCUSD rises in response to liquidation of futures

On Saturday, Chinese crypto journalist Colin Wu tweeted that the bears had liquidated $90 million worth of BTC futures. This, in his opinion, may indicate that the increase above $41,600 at the beginning of the weekend was mostly driven by the spot market.

Now the key zone that will determine the direction of BTCUSD will be the range between $40,000 and $42,000 per coin. It is broken, but it is also important to consolidate higher. But even after it, one should be careful with subsequent growth forecasts. We are now heading for the $45,744.38 level. And overcoming this mirror horizontal will be a good sign that crypto bulls are regaining power over the market. There it will already be possible to expect $50,000 - $52,000 per coin from the main cryptocurrency.

Acceptance of Bitcoin as legal tender in the U.S.

In addition to the correlation, there is also intriguing news regarding the cryptocurrency. Mike Alfred, venture capitalist and former founding CEO of BrightScope and Digital Assets Data, said on Twitter that at least one U.S. state is likely to accept Bitcoin as legal tender this year.

Alfred wrote that several states - Arizona, Texas, California, and Michigan - participate in the elections. He wrote that as soon as one of them makes a statement about the acceptance of BTC, its price can soar to new all-time highs.

In the comment thread, Alfred also posted a link to a petition to help vote for the adoption of Bitcoin as legal tender.