It seems that bitcoin has been correlated with traditional markets for the past month, closely related to stocks, and in our bitcoin news today we will try to figure out what is causing this movement.

Over the past week, billions of dollars have been removed from the total market cap of the crypto industry. Bitcoin price is down 8.8% over the past week, while ETH is down 15.4% and BNB is down 17.9%. DOGEcoin lost 20% of its value today, so all top ten cryptocurrencies by market capitalization apart from Solana are in the red for the week. The market roadmap tricked the central bank governor into issuing another BTC obituary, but the trades are forgiven for thinking that this week will actually deviate from the BTC price on an exchange. In El Salvador, the entire sovereign government has accepted BTC as an official instrument, and the network’s overall hash power has increased with the displacement of miners in China. The hash rate has doubled since the lows in late June.

There has also been a new wave of funding in BTC, and as institutional investors have found, these massive investments actually come from these institutional investors:

“This is coming from Coinbase, a cryptocurrency platform known for its service and essentially acting as the primary broker for institutions. The first quarter report found that of the $ 335 billion in deals the company made in the first quarter of 2021, $ 215 billion came from institutional investors.

This could also be responsible for the price of Bitcoin and its decline over the past week, although all of these signs are viewed as positive for the fundamentals of the blockchain business. Institutional investors took a risk in stocks this week as the major stock indices all fall this week. This is what industry players are looking for as they start to cheer the institutional launch of BTC while having a capitalization with their total capitalization and BTC like high tech stocks highly correlated with each other after broad market moves.

When Bitcoin is correlated to traditional markets, its pricing is clearly correlated relative to the gains and losses of the S&P 500 index. Of course, BTC has a more dramatic and volatile curve, but there is definitely a correlation if you look at the chart. Adding the Dow Jones Industrial Average, UK 100, FTSE 100 Index, and the NASDAQ composite further confirms the correlation. All of these major stock indices and the BTC price move in sync with each other. Institutional investors are pragmatic and prudent and strive to maximize profits and minimize losses. As they continue to sell cryptocurrencies, traders will have to re-evaluate and re-evaluate their selling hands.

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