Bitcoin keeps following the stock market

If you are trying to predict the bitcoin price, you should pay attention to the macro environment and the US stock market.
Source: Tradingview

2022 has been difficult for the stock market, with the S&P 500 declining 14% and the tech-oriented Nasdaq falling 22%. With bitcoin closely following equities, albeit with higher volatility, it's no surprise that bitcoin (-51%) has fallen even more than the stock market in 2022.

There are two main reasons behind bitcoin's weak start to 2022. The first is forced selling related to all the prominent market participants failing in May and June. The second is rising interest rates.

Link copied to clipboard.