The recent performance of the cryptocurrency market, especially Bitcoin, is really hard to describe. It feels like Bitcoin is dead without the support of the U.S. stock market.
In the past, the relationship between the US stock market and Bitcoin was like a pair of inseparable brothers. If the US stock market rose well, Bitcoin would also benefit from it, and the price would soar all the way. The market was full of cheers and excitement, and investors were like chicken blood, unable to hold back their wallets, and rushed in one after another. Why? Everyone thought that the good performance of the US stock market showed that the overall economic environment was not bad, and funds were attracted to various investment fields like being attracted by a magnet, and Bitcoin would naturally get a share of the pie.
However, once there is a slight disturbance in the US stock market and it starts to fall endlessly, Bitcoin immediately becomes anxious. The price drops like it's on a slide, plummeting down. Previously, when the US stock market showed significant fluctuations due to unsatisfactory economic data or slight changes in Federal Reserve policy, Bitcoin jumped up and down along with it. Investors' hearts feel like they're being fried in hot oil, sometimes hot, sometimes cold.
You say this Bitcoin is still a dominant presence in the cryptocurrency field; how can it be so reliant on the US stock market? Ultimately, it's the lack of market confidence that is at play. As an important barometer of the global economy, every move of the US stock market affects investors' confidence in the entire financial market. Although Bitcoin claims to be decentralized and not bound by the traditional financial system, in actual market operations, it has still been unable to shake off this 'psychological dependence.'
Without the positive stimulation from the US stock market, Bitcoin's trading volume has also begun to shrink significantly. It's like a bustling market suddenly losing its crowd; the stalls are still there, but there are hardly any buyers. Those big players and traders who were once active in the market have become cautious, afraid to act hastily. Without a massive influx of funds, Bitcoin's price naturally loses its upward momentum and can only linger at low levels, like a child without a guiding hand.
However, that being said, Bitcoin can't just 'lay flat' like this, relying on the US stock market to get by. It needs to find its own development rhythm and establish an independent value support system. Otherwise, as long as there is a slight movement in the US stock market, Bitcoin will still be led around, continuing to stumble in this volatile market like a headless fly, leaving investors' hearts in suspense, unable to find peace.
