The King of DAOs

Chart of the Day

Over the past few days, the correlation between BTC and traditional market indices including the SPX has slowly crept up to approach the 0.5 mark as the macroeconomic conditions continue to deteriorate. This doesn't come as much of a surprise, as many studies have shown that the correlation between traditional risk assets and crypto does tend to inch towards 1 during times of market distress. We are currently seeing this theory being played out in real time, as the battering of companies like Netflix and Facebook on the back of disappointing earnings seem to be dragging down both traditional and crypto benchmarks. During yesterday's calamitous plunging of Meta's share price, however, BTC actually held its ground pretty firmly around the $36k support, and even staged a comeback above the $37k level after rallying by 1.3% within the last 24 hours. Granted, whilst BTC's percentage gains over the past day do not reflect the usual (larger) numbers that most crypto natives are used to, these gains are still quite remarkable if we consider the persistently muted spot volume over the past few days, where, according to CryptoCompare, the spot volume across all major exchanges has hit a new low that has not been seen since December 2020. For now, an immediate roadblock awaits BTC near the $37.8k region, and its upside momentum may be limited if the $38k resistance remains un-cleared upon repeated tests. With regard to the major altcoins — ETH seems to be bouncing back pretty strongly from the recent Wormhole exploit, whilst SOL has also seen a 5% recovery within the past 24 hours.