Global stock markets showed signs of recovery on Monday as investors scaled back previously taken defensive positions amid concerns about a potential escalation in the Middle East. Eric Demuth, CEO of Austrian crypto broker Bitpanda, noted that Bitcoin's price movements are increasingly influenced by broader market sentiment, with no distinct pattern of retail trading activity What differences are observed around the halving event?
The similarities between cryptocurrency and stock trading behavior have been highlighted, with Demuth commenting that the same individuals who trade stocks, especially technology stocks, are also participating in the cryptocurrency market . Excitement surrounding the potential US regulatory approval of spot Bitcoin exchange-traded funds (ETFs) contributed to Bitcoin's recovery from several downturns in 2022.
A global market strategist at eToro highlights the continued shift towards the "institutionalization" of Bitcoin. Although retail investors currently dominate the Bitcoin market, the broker predicts that future regulatory changes could make Bitcoin ownership easier for companies, banks and central bank.
The total value of cryptocurrencies is estimated to be around $2.5 trillion, according to CoinGecko, a market tracker. However, regulators continue to warn that cryptocurrencies are speculative, carry high risks and have limited practical applications.
