The largest digital token by market cap is rising 5% to $20.4K as of shortly before 12:00 p.m. ET, as it’s been seesawing back and forth in a tight trading range in recent months. Ethereum (ETH-USD) is jumping 8% to $1.14K. Keep in mind, though, that both cryptos are off well over 60% from their November peaks.
That begs the question of whether the current upswing in cryptos is the beginning of a much bigger rally, or if the cryptoverse is experiencing a bear market rally followed by new lows.
Stocks, however, are getting knocked lower as producer prices for June came in hotter than expected (a day after consumer prices topped consensus), in addition to markets pricing in a full-point jump this month in the Federal Reserve’s benchmark lending rate.
With that being said, it comes at no surprise that bitcoin’s (BTC-USD) correlation with the tech-heavy Nasdaq (COMP.IND) is dipping to its lowest since January, but still remains elevated from 2021, Bloomberg reported. Specifically, the 40-day correlation coefficient for bitcoin and the Nasdaq 100 index has fallen to under 0.50, nearing its lowest level of 2022.
That puts crypto-related stocks in an awkward position given their exposure to both the stock market and the cryptosphere. Most crypto stocks are trading in the red intraday, including Coinbase Global (NASDAQ:COIN) -1.2%, Silvergate Capital (SI) -1.6%, Core Scientific (CORZ) -3.3%, SOS (SOS) -3.2%, Marathon Digital (MARA) -2.5% and Bitfarms (BITF) -2.2%.
Earlier, crypto lender Celsius filed for bankruptcy.