Bitcoin (BTC) lost nearly $1,000 in the first hour of Wall Street trading on May 5 as a brief rally ended in disappointment.
Nasdaq falls 4% at open after Fed news
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as it returned to $38,130 on Bitstamp nearly 24 hours after hitting weekly highs of $40,050.
The move came courtesy of highly correlated US stock markets, which opened volatile after posting their own short-lived gains following comments from the Federal Reserve on May 4.
At the time of this writing, the S&P 500 is down 3%, while the Nasdaq 100 is down 4.1%, all within the first hour of trading.
Ah, stocks dumping after one day reactionary rally.
Tale as old as time.
— The Wolf Of All Streets (@scottmelker) May 5, 2022
Ah, stocks crash after a day of reactionary rally.
Tale as old as time.
Traders were generally unfazed by the cross market price action. Focusing on Bitcoin, Cointelegraph contributor Michaël van de Poppe argued that there was room for a $38,000 retest without disruptive sentiment.
“Bitcoin looking at a HL where I would rather look at a potential long”, said to Twitter followers, referring to a higher low, or HL, possibly printed on the daily chart.
“As long as we stay above $38,000, everything looks good to continue.”
In the meantime, trader Cheds highlighted $37,500 as the level to hold to avoid deeper weakness below.
“If we drop below 37,500 $BTC today, watch out next,” warned.
That area has marked the lows of the month of May so far, having received two re-evaluations.
Purpose Bitcoin ETF sees record daily inflows
Investor behavior and data provided a refreshing contrast to concerns that Bitcoin whales were unwilling to buy at current price levels.
Analyzing the inflows into the world’s first Bitcoin spot exchange-traded fund, the Purpose Bitcoin ETF, analyst Jan Wuestenfeld he pointed that a new record was set on May 4.
That day, 2,900 BTC entered the Bitcoin investment vehicle, indicating the growing scale of demand for BTC exposure among institutional investors.
“It could have been Powell’s comment yesterday that they’re not considering 75bps uploads, which has people jumping again.”Wuestenfeld suggested, also sharing a chart from on-chain analytics firm Glassnode.
He added that Purpose’s assets under management were just 2,000 BTC shy of their all-time highs.
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