ChainCatcher news, according to Bloomberg, correlation studies show that the correlation between digital assets and the U.S. stock market has nearly reached historical highs, indicating that the macroeconomic variables driving the stock market are also affecting the cryptocurrency market.Data compiled by Bloomberg shows that the correlation coefficient between an index measuring the 100 largest digital assets and the S&P 500 index is approximately 0.67 over a 40-day period, a level only surpassed in the second quarter of 2022 when it reached 0.72. A coefficient of 1 indicates that the assets move in perfect unison, while a coefficient of -1 indicates they move in completely opposite directions.This week's focus will be on comments from Federal Reserve officials and the release of the U.S. Personal Consumption Expenditures Price Index (PCE). Sean McNulty, trading director at liquidity provider Arbelos Markets, stated, "We believe that the speakers are more important than the PCE inflation data, as the market is currently trying to understand the Federal Open Market Committee's (FOMC) reaction function."

ChainCatcher news, according to The Block, research firm Bernstein stated in a report that "the initial reaction of Bitcoin as a 'safe-haven' asset is not surprising, as this pattern often occurs in the Bitcoin market (previously seen during the flash crash in March 2020), especially since it is the only market that trades on weekends. We remain calm."Analysts added, "We do not see any incremental negative factors here. If the usual response to concerns about a U.S. economic recession is interest rate cuts and increased monetary liquidity, we expect the prices of 'hard assets' like Bitcoin (digital gold) to rise."However, Bernstein analysts indicated that Bitcoin remains a "Trump trade," as the market tends to support the pro-crypto stance of this U.S. presidential candidate. Analysts stated, "It is not surprising that Bitcoin and cryptocurrencies performed poorly when the odds between Trump and Harris on Polymarket narrowed. We expect the Bitcoin and cryptocurrency markets to remain range-bound before the U.S. elections, trading influenced by catalysts such as presidential debates and the final election results."Overall, Bernstein expects the crypto market to react to macroeconomic and election signals in the third quarter. However, analysts predict that if the broader stock market recovers due to the Federal Reserve's response, the Bitcoin and cryptocurrency markets will follow this trend.

ChainCatcher news, according to Bitcoin.com, QCP Capital pointed out in a recent market report that the market has experienced a significant correction, with the price of Bitcoin dropping from $70,000 to nearly $60,000. This decline was primarily due to an unexpected surge in Bitcoin supply. Several key events contributed to this supply shock, including the U.S. government's release of approximately 28,000 Bitcoins, the allocation of 33,960 Bitcoins in the Mt Gox settlement agreement, and the distribution of $1.5 billion worth of Bitcoin and Ethereum to Genesis creditors. These factors collectively exerted tremendous downward pressure on the market. In addition to the increase in supply, QCP also emphasized the impact of the recent rise in mining difficulty. The difficulty level surged by 10.5%, reaching an all-time high, which added extra pressure on miners, forcing them to liquidate their holdings.Macroeconomic indicators have also fueled bearish sentiment. QCP noted that the higher-than-expected unemployment rate of 4.3% and concerns about an impending economic recession have heightened investor anxiety. QCP analysts highlighted that the key indicator for measuring market volatility, the Chicago Board Options Exchange Volatility Index (VIX), soared above 28, reaching its highest level since the regional banking crisis in March 2023, further exacerbating market unease. Despite the turbulent market conditions, the volatility of Bitcoin and Ethereum remained relatively stable, with Bitcoin's front-end volatility slightly rising from 45% to 48%, while the back-end volatility remained unchanged. Market strategists interpreted this as a signal that despite the recent turmoil, the market expects price volatility to stabilize in the coming months.