Bitcoin and Other Digital Assets Rose Recently, Bucking the Trend of the Stock Market’s Decline.

 For digital assets, this is a turning point. Until now, they’ve been demonstrated to be linked to equities and hence subject to even greater loss.

Bitcoin’s price has increased to $19,800 in the last 24 hours, an increase of less than 1%. On Wednesday, the price of the most popular cryptocurrency, Bitcoin, fell to a low of $19,150 but has since recovered. Despite a recent rally to a high of $22,000, Bitcoin has now fallen back below the critical $20,000 threshold.

Oanda analyst Edward Moya said that Bitcoin is showing some indications of stabilizing, but sellers are The situation is being carefully monitored to see whether the June lows will hold. This week, experts have been paying attention to how technical signs signal that another slide into the low $18,000s — or maybe lower — is on the horizon for Bitcoin.

When compared to the stock market, Bitcoin’s resiliency stands out. On Wednesday, the S&P 500 and the Nasdaq both finished down, and the futures for both indexes suggest that more of the same is expected on Thursday. It is theoretically possible for Bitcoin and other cryptocurrencies to trade independently of conventional finance, but in the last year, this hasn’t happened.

As a result of inflation statistics released on Wednesday, which showed the highest annual rise in the U.S. CPI in 40 years and above forecasts, the stock market is once again reeling from worries of a recession.

Stockholders are afraid that the Federal Reserve may be unable to prevent a recession by increasing interest rates to combat rising prices, which would reduce economic demand. Economic downturns aren’t exactly conducive to high-risk investments like Bitcoin and other cryptocurrencies.

However, the value of digital assets has already plummeted. After its worst quarter in almost a decade, Bitcoin’s price is still only trading at a third of its November 2021 high. The collapse of stablecoin Terra and the bankruptcy of hedge firm Three Arrows Capital, in addition to macroeconomic issues, have worsened the price falls.

To reorganize, crypto lender Celsius Network filed for Chapter 11 bankruptcy on Thursday, adding to the fray. In response to a decline in the value of digital assets, Celsius, which had previously given rates of almost 20% on crypto deposits, put a freeze on all withdrawals, swaps, and transfers for its customers last month.

Despite the news that Celsius, a prominent supplier of crypto banking services in the US, has filed for bankruptcy, “token values are generally stronger this morning,” said Hargreaves Lansdown fund manager Steve Clayton.

On Thursday, the value of the second-largest cryptocurrency, Ether (ETH USD +0.39 percent), increased by 2% to just over $1,100. In the smaller cryptocurrency market, Solana SOLUSD +0.89 percent increased by 1%, while Cardano decreased by 1%. 

As for meme currencies, Dogecoin DOGE USD-0.04% was down 2%, while Shiba InuSHIBUSD was down 1%, according to CoinMarketCap’s data.