Bitcoin (BTC) is not impressing market makers today as its price is still trading at a relative loss. Per data from CoinMarketCap, the premier digital currency is down by 2.1%, with its price changing hands at $25,883.15. The coin appears not to be acting alone, according to an observation from Mike McGlone, the popular senior macro strategist for Bloomberg Intelligence.
According to McGlone, Bitcoin is maintaining a strong correlation with one of the popular Japanese market indexes, the Nikkei 225. The analyst noted that the index can serve as a viable guide for profiling Bitcoin’s performance and vice versa. Per the post shared on the X app, both Bitcoin and Nikkei 225 have been maintaining a directional relationship for quite some time.
The downside to this relationship, as he noted, is that the recent downturn in the price of the coin may portend a contagion for Nikkei 225 in the long run. The relationship at this time may not favor Bitcoin as bulls may choose to rally around the coin to pull off a related feat like the index, which recently retested a new high after about 33 years.
Bitcoin boosters in hibernation
While it is possible for Bitcoin to chart this ambitious growth path, the feat needs some very powerful and directional triggers that can be sustained for a long time. One of these triggers is embodied as a potential accumulation from institutional investors.
According to market experts, any potential approval of a spot Bitcoin Exchange Traded Fund (ETF) product in the United States will go a long way toward triggering this run in price. The hurdle to beat, however, is the turnaround from the country’s Securities and Exchange Commission (SEC), which has been rejecting related bids and currently postponing decisions to approve current filings.
Bitcoin is adjudged to be in its most pervasive hibernation phase prehalving, with the potential for a massive breakout soon.