Vibe Check: Todd Groth Predicts a Bullish Bounce Back in Crypto

• Crypto Market Displays Bullish Resilience
• Momentum Drivers in the Crypto Market
• Fluctuating Correlations in the Digital Asset Market
• Relationship between US 10-year Yield Changes and Risk Assets
• Market Highlights
• Ether Projected to Reach $4,000
• Bitcoin ETFs See Net Inflows for the First Time in a Week
• SOL and AVAX Boost Crypto Market Recovery
• Bitcoin ETF Alters BTC's Price Correlation with Luxury Watches

Crypto Market Displays Bullish Resilience

In the past week, the crypto market has exhibited a bullish resurgence, with significant support spotted in previous analysis. Interestingly, The Source 20 Index has shown notable performance, surpassing both Bitcoin$42,260 -0.64% (BTC) and Ether (ETH).

Momentum Drivers in the Crypto Market

Several factors are contributing to the market's striking bounce back. Alongside Bitcoin's steady recovery, Solana$104 5.03% (SOL) has recorded a 25% gain, while Avalanche (AVAX) has seen a 23% rise. Both of these performances are adding some lift to the broader market.

Fluctuating Correlations in the Digital Asset Market

In terms of the digital asset market, correlations have undergone significant changes over the last month. Bitcoin (BTC) and Ether (ETH) correlations have decreased, while relations between altcoins and The Source 20 have shown an upward trend. Additionally, the correlations between digital assets and traditional equity markets have flipped positively.

Relationship between US 10-year Yield Changes and Risk Assets

There is now a stronger correlation observed between US 10-year yield changes and risk assets such as cryptocurrencies and equity markets. These changes are predominantly determined by debates within the market regarding the timing and scale of future rate cuts.

Market Highlights

Ether Projected to Reach $4,000

Standard Chartered, a prominent British bank, forecasts that Ether could potentially hit the $4,000 mark if spot Ether ETF receives approval in May. The bank predicts that the SEC will treat spot Ether ETF applications similarly to Bitcoin ETFs and anticipates approvals on May 23.

Bitcoin ETFs See Net Inflows for the First Time in a Week

Bitcoin prices have neared the $44K mark as Bitcoin ETFs witnessed net inflows for the first time in a week. The last recorded net inflow day was on January 22, when the spot products as a group added just over 1,200 Bitcoin.

SOL and AVAX Boost Crypto Market Recovery

Solana (SOL) and Avalanche (AVAX) have played a significant role in the recovery of the crypto market, leading to increased optimism. This has set up Bitcoin for a potential test of the $46,000 mark.

Bitcoin ETF Alters BTC's Price Correlation with Luxury Watches

The introduction of a Bitcoin ETF has disrupted Bitcoin's pandemic-era price correlation with luxury watches. These crypto prices have now decoupled from prices for luxury watches, ending a long-term positive correlation spurred by unprecedented monetary stimulus.

Edited by Jonathan Stoker