Bitcoin has gained nearly 3% in the last 24 hours after holding above $37,000 as of Friday. Altcoins also followed the relative recovery in Bitcoin.
However, analysts did not see the kind of jump in the stock markets that would encourage them to buy crypto assets. The S&P 500 remained roughly sideways, compared to the nearly 3% jump in Bitcoin and Ethereum. FxPro analyst Alex Kuptsikevich told CoinDesk:
“Investors continue to withdraw from US stocks amid the anticipated tightening of the US Federal Reserve’s monetary policy. ”
If the selling continues, more investors may continue to reduce their risky asset positions. Kuptsikevich says that in such a case, the first market to be affected may be the crypto market. This may mean that the rise seen in Bitcoin in the last 24 hours is limited. Analysts are also raising concerns about a bear market similar to the one that occurred in 2017-2018, given the macroeconomic woes. Bitcoin is down roughly 40% after making ATH at $69,000 in November.
DeFi Assets and Altcoins Point to Increased Risk
Analysts also pointed to the recent poor performance of DeFi assets and some altcoins. This is interpreted as an increased risk in crypto-asset markets. If uncertainty is high in the markets, users tend to turn to Bitcoin, which they think is less risky.
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