US Stocks Reach New AllTime Highs as Bitcoin Price Hovers Around 56K

Bitcoin maintained modest gains as Wall Street reached new record highs on July 8.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin continued to separate from soaring stocks and gold, according to data from Cointelegraph Markets Pro and TradingView. The price of Bitcoin experienced a tug-of-war around the $56,000 mark, amidst increased volatility. Over the weekend, the spot price fluctuated due to thin liquidity, but rebounded during the Asia trading session after turbulence following the weekly close on July 7. However, crypto markets declined again as the S&P 500 and Nasdaq Composite Index achieved new all-time highs.
Trading firm QCP Capital summarized the situation in its latest bulletin to Telegram channel subscribers, stating, “Equities and Gold have been bouncing higher from the start of last week but crypto prices have gone the other way.”
BTC/USD vs. S&P 500 1-day chart. Source: TradingView
As a result, attention shifted to the upcoming macroeconomic reports and testimony by Jerome Powell, the chair of the U.S. Federal Reserve. Keith Alan, co-founder of trading resource Material Indicators, expressed caution regarding Bitcoin and warned of the possibility of new macro lows. He stated, “The market could test your conviction with a wick to $48k,” alongside a chart featuring Material Indicators’ proprietary trading tools.
BTC/USD chart. Source: Keith Alan/X
Alan also noted that he had been monitoring a 40% drawdown from Bitcoin’s all-time high of $73,800 in March, which occurred after the block subsidy halving event a month later. He described this retrace as the deepest in the cycle so far and the second-longest, lasting 49 days. Popular trader and analyst Rekt Capital echoed this sentiment, comparing the current downturn to previous ones.
BTC/USD chart. Source: Rekt Capital/X
Some market participants hoped that U.S. spot Bitcoin exchange-traded funds (ETFs) would generate buyer interest and push Bitcoin to higher levels. These ETFs saw $143 million of net inflows on July 5, the highest in a month, which was attributed to institutional interest in “buying the dip.” Sina G, co-founder and chief operations officer of Bitcoin custody consultancy firm 21st Capital, stated, “The run-up from $16K to $73K was largely driven by the ETFs, following a buy-the-rumor buy-the-news phenomenon.”
This article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.