Bitcoin’s trading volume continued to decline over the past week as alternative cryptocurrencies such as ether rose to new price highs.
“Active speculators in the cryptocurrency market are jumping from one coin to another, trying to ride the small waves,” Alex Kuptsikevich, an analyst at FxPro, wrote in an email to CoinDesk.
Bitcoin’s correlation with the S&P 500 continued to rise over the past month, suggesting investors’ appetite for risk remains strong.
The chart below also shows the declining correlation between bitcoin and long-term Treasury bonds.
For now, it appears that investors are positioning away from long-duration assets, which are more sensitive to rising interest rates as a result of tighter monetary policy.
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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis.
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