Bitcoin Price Seesaws Near $56K as US Stocks Post Fresh All-Time Highs

Bitcoin clung to modest gains at the July 8 Wall Street open as United States equities hit new record highs.

• BTC price volatility keeps the pressure on traders with stocks leaving Bitcoin ever further behind.

Bitcoin Continues to Split from Sky-High Stocks, Gold

Data from Cointelegraph Markets Pro and TradingView showed a Bitcoin (BTC) price tug-of-war over the $56,000 mark. Amid heightened volatility, the spot price glided through thin liquidity throughout the weekend, hitting turbulence after the July 7 weekly close before rebounding during the Asia trading session. Crypto markets then declined again, continuing to diverge from risk assets more widely as the S&P 500 and Nasdaq Composite Index achieved new all-time highs on the day.

• Equities and Gold have been bouncing higher from the start of last week but crypto prices have gone the other way.

Hopes Lie with Bitcoin ETFs

Others hoped that the U.S. spot Bitcoin exchange-traded funds (ETFs) might provide the buyer interest needed to reclaim higher levels. These had seen another $143 million of net inflows during their previous trading day on July 5, their highest in a month and attributed to institutional interest in “buying the dip.”

“The run-up from $16K to $73K was largely driven by the ETFs, following a buy-the-rumor buy-the-news phenomenon,” the co-founder and chief operations officer of Bitcoin custody consultancy firm 21st Capital known as Sina G wrote in a recent analysis piece on X. “Up to mid-March ETF flows were very strong and the market moved up. Since then ETFs slowed down and bankruptcy outflows took over, causing weak price action all the way down to $56K.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their research when making a decision.