Bitcoin recovers ground this Tuesday accompanied by Wall Street stocks

Source: CritpoTendencia Original Title: Bitcoin recovers ground this Tuesday accompanied by Wall Street stocks Original Link: This Tuesday, the price of Bitcoin is recovering ground rapidly after the sharp drop it experienced on Monday. The rise of the largest cryptocurrency is also contributing to the improvement of stocks in the US stock market. So far today, the main Wall Street indices are back in the green.

According to market reports, Bitcoin is seen by stock investors as a benchmark for measuring risk levels in the markets. In this sense, it is noted that the halt in the pioneer cryptocurrency’s crash this Tuesday was received by Wall Street as a buy signal for stocks.

This is a fact of enormous relevance, given that previously Bitcoin used to move in the wake of stocks, and now the opposite is happening, at least in the current context. This further confirms that the incursion of the crypto world into the financial sector continues to strengthen this area.

Contrary to the critics’ view, the digital currency seems to be playing an increasingly prominent role in the stock market.

However, while Bitcoin is recovering ground, its persistent volatility is also highlighted. After several sessions of recovery above $90,000, the token suffered a sharp drop this Monday that ended with the liquidation of over $1 billion in long positions in the leveraged derivatives market.

Thus, after bottoming out at $83,862, the price of BTC is back to $91,000 at the time of writing this note.

Possible factors behind the recovery in Bitcoin’s price

So far, it is not clear what is driving the current BTC rally in the spot market. The announcement by SEC Chairman Paul Atkins about the start of the innovation exemption for companies in January could be considered one of the catalysts. This reaffirms that the new era of digital currencies continues to move forward steadily during the Trump administration.

On the other hand, it is also noteworthy that a major investment management company opened the door for trading crypto ETFs and mutual funds on its platform. This is major news that reinforces the growing institutional interest in exposure to cryptocurrencies in general, and Bitcoin in particular.

The Fusaka update for Ethereum is another crucial element stimulating demand in the crypto world. This upgrade promises to boost efficiency and scalability on the world’s largest multi-purpose blockchain, benefiting the entire crypto sector.

Bitcoin’s advance may also be driven by rising expectations of an interest rate cut in the United States. The chances of a 25 basis point rate cut at the December 9-10 meeting have risen to 87.2%. This is a crucial figure with just 8 days left until that meeting.

Bitcoin’s momentum is also reflected in the +0.56 rise in the S&P 500 and the +1.03 in the Nasdaq so far this Tuesday.