Bitcoin image (Source = Reuters Union)

Bitcoin sideways below $40,000… Why does it rise slightly in box trading?

Bitcoin image (Source = Reuters Union)

Although Bitcoin rose slightly, it did not cross the $40,000 level and remained at the $39,000 level. It plummeted to the $37,000 level on April 27th and recovered, but it is still within the box.

As of 1:54 pm on April 29 (Korea time), on CoinMarketCap, a global cryptocurrency price tracking site, Bitcoin (BTC) is trading at $39,560.19, up 0.51% from 24 hours ago. At 3 a.m. on the 29th, it seemed to show a rebound as it crossed the $40,000 line, but it soon returned the increase and was below $40,000.

The reason why the bitcoin price was able to rise slightly was analyzed to be influenced by the rise in the price of big tech stocks. Despite the news that the U.S. economy recorded negative growth, the Nasdaq closed at 12,871.53, up 3.06% due to the announcement of good results from the meta. Representative big tech companies, such as Apple 4.52%, Microsoft 2.26%, Nvidia 7.42%, and Google 3.7%, led the share price rise.

In recent years, Bitcoin is intensifying its coupling (synchronization) with the tech stock-oriented Nasdaq index to the extent that decentralization has become insignificant. According to Bloomberg data, on April 8, the correlation coefficient between the Nasdaq 100 index and the Bitcoin price for 40 days was 0.7, the highest ever. The closer to 1, the stronger the synchronization. The link between the Bitcoin price and the Nasdaq index is expected to continue for the time being. Arkane Research, a blockchain data analysis company, diagnosed that “extensive financial market fears have had a direct impact on Bitcoin’s returns,” and said, “This year’s financial market trends may affect the price of Bitcoin.”

The fact that global investment bank Goldman Sachs provided a service to lend money using Bitcoin as collateral also contributed to the rise of Bitcoin. Bloomberg reported on April 28 (local time) that “Goldman Sachs Group has entered the stage of accelerating the adoption of virtual assets on Wall Street by providing the first loan service backed by Bitcoin.”

Goldman Sachs has recently shown a high interest in the field of blockchain, including virtual assets. In early March, for the first time among major U.S. banks, virtual asset investment company Galaxy Digital conducted an over-the-counter transaction for virtual assets. He also revealed that he is considering tokenizing real assets using non-fungible tokens (NFTs).

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