Bitcoin price stabilizes near $83K as investors eye S&P 500 recovery
Bitcoin price volatility continues, but BTC derivatives remain strong, signaling that whales expect a limited price decline.
Bitcoin’s (BTC) recent volatility highlights how markets tend to overreact, especially in situations that can escalate, such as trade wars. The 6.5% drop in the S&P 500 since its all-time high on Feb. 19 might seem minor in absolute terms, but the potential earnings impact is more significant. However, derivatives markets suggest Bitcoin’s dip below $83,000 should be short-lived.
Traders tend to sell off assets when they sense a recession coming. Presently, investors are moving into cash and short-term government bonds. This shift explains why the US 2-year Treasury yield recently hit its lowest level in five months. Traders are willing to accept lower yields, which shows strong buying interest.
US 2-year Treasury yield (left) vs. Bitcoin/USD (right). Source: TradingView / Cointelegraph
