Bitcoin

Stocks Outperform Bitcoin! Here Is How The Price Action Will Perform Now

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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May 27, 2022

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Bitcoin’s (BTC) recent losses have caused it to behave differently this week than major US stocks.

At about $29,000, the world’s largest cryptocurrency is down by more than 4% in the last seven days. In comparison, the Nasdaq 100, BTC’s closest stock market counterpart, is expected to rise 2% this week.

The gap with the S&P 500 is considerably wider. This week, the benchmark index is up 3.3%. 

While markets in the United States have rebounded significantly in recent days, Bitcoin has been swayed away. The token’s Thursday session reflected this as well. While Wall Street recovered in the face of dismal U.S. GDP statistics, Bitcoin fell below $29,000.

BTC is currently trading at $28,906, which is its final significant support level, beyond which it might fall considerably more. Earlier this month, the token hit a low of $25,000 for the first time.

Bitcoin, Worst Performer Than US Stocks

The performance gap between BTC and the Nasdaq 100 this year has increased significantly as a result of this week’s losses.

BTC is currently down about 40%, while the Nasdaq is down roughly 25%. Positive corporate profits have aided Nasdaq, but there have been none for BTC.

The token is currently on track to have its worst weekly run ever, with its ninth consecutive week in the red. On Friday, today, a large number of BTC options will expire, potentially resulting in more losses for the coin.

On 27th May, today, U.S. stock futures are also going down.

Altcoins Suffer huge Losses

This year, BTC has plummeted, reversing most of its gains from the previous two years. These losses are mostly due to concerns about increasing inflation and interest rates.

Those reasons are still at work, putting a damper on cryptocurrency demand. Altcoins have lost considerably more ground than Bitcoin

Investors are now anticipating a slew of new rules in the crypto industry, thanks to the Terra meltdown.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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