Analysts point out that they seem to exist in their own world
The cryptocurrency market is making steady progress on its upward trend. Bitcoin (BTC) has increased by almost 2% in the last 24 hours and is currently trading at around $25,000, while Ethereum (ETH) has gained 0.4% and is trying to maintain its recent conquest of $1,700.
After a quiet day in the United States due to the Presidents' Day holiday, Wall Street reopens today, which could help to define the direction of the cryptos. That's what some believe. For others, like Craig Erlam, Senior Market Analyst at Oanda, cryptocurrencies seem to exist in their own world, with bitcoin rising by 2% again on Monday and pointing back to last week's highs.
This could be a really crucial level for bitcoin, and a break above it could generate a lot more excitement. And we've all seen what happens when there's excitement and euphoria in cryptocurrencies. The price can skyrocket regardless of fundamentals or general sentiment, Erlam adds. Nevertheless, this expert warns that this circumstance doesn't necessarily mean we'll see it this time, but the 50% recovery so far this year suggests that something may be happening.
Despite the Securities and Exchange Commission's (SEC) regulatory progress on Binance USD (BUSD) and Kraken, and the disappointing macroeconomic data in recent weeks, the market's optimism remains unscathed. Some analysts note that the rise in the bitcoin futures market is a good sign for the price of the leading cryptocurrency.
On the other hand, others point out that the little impact the regulatory action has had in the United States will be offset by the macro data and the stock market. In this regard, the correlation with the 50-day futures of the S&P 500 remains high at 83%. According to experts, a correlation higher than 70% indicates that assets move in parallel, which means that the macro scenario will likely determine the overall trend. Therefore, investors would do well to pay attention to the publication of the Federal Reserve's minutes on Wednesday, February 22.
As for the rest of the market, it's mixed. Ripple (XRP) is up 2.3% and is one of the few major tokens in positive territory. Cardano (ADA), Polygon (MATIC), Solana (SOL), Polkadot (DOT), Shiba Inu (SHIB), and Litecoin (LTC) are down between 0.5% and 2.5% on Tuesday.