Bitcoin underperforming major alts and U.S. equities

Bitcoin sees a slow week with prices mostly oscillating around $21,000. In the last seven days, BTC has underperformed U.S. equities, seeing a 3% gain, compared to S&Ps 5.6% and Nasdaq’s 6% gains over the same period.

Ether (10%) and BNB (11%) outperform both BTC and U.S. equity indexes, as the altcoin market has seen a welcome recovery after weeks of red. Ether saw its first green weekly close since March 28th last week, ending the 11-week-long trend of red candles.

Bitcoin’s relative underperformance to both equities and altcoins in this highly correlated environment is likely caused by the ever-growing contagion effects related to UST and 3AC’s collapse, placing centralized lenders in between a rock and a hard place amid a combination of defaults and bank runs. The market is paying close attention to how the current imbalances are resolved, putting a tight leash on BTC’s ability to see a substantial recovery.

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