The S&P 500 Index is extending its recovery, boosting buying in Bitcoin and select altcoins in the near term.
The S&P 500 (SPX) Index rebounded sharply from its intra-week lows to end the week on a flat note. Bitcoin (BTC) also made a similar recovery from its weekly lows to finish with marginal gains of about 1%. The failure of the bears to capitalize on the weakness suggests that the lower levels are attracting buyers.
The bears tried to deepen the pullback on Aug. 12, but the bulls purchased the dip in Bitcoin and are trying to maintain the price above the psychological level of $60,000. Bitcoin’s volatility is keeping traders on the edge. The Crypto Fear & Greed Index, which hit a low of 17/100 on Aug. 6, rose to 48/100 on Aug. 9 and is again back into the extreme fear zone at 25/100 on Aug. 12.
The next big question is will the recovery sustain? Inflows into the spot Bitcoin exchange-traded funds have been sketchy over the past few days, indicating uncertainty among investors. Another short-term negative is that the institutions seem to have halted their stablecoin purchase, according to onchain analytics platform Lookonchain.
