The recovery in the U.S. stock market has played a significant role in the recent relief rally in Bitcoin and select altcoins. Here are the most important points to consider:
1. Correlation between stock market and cryptocurrency: The stock market and cryptocurrency have shown a strong correlation in recent times. When the stock market experiences a downturn, cryptocurrency tends to follow suit, and vice versa. This is because investors tend to move their funds from one asset class to another, depending on market conditions.
2. Increased institutional interest: The recent surge in Bitcoin and select altcoins can also be attributed to increased institutional interest. Many large financial institutions have started investing in cryptocurrency, which has helped to boost the market. This increased interest is due to the growing acceptance of cryptocurrency as a legitimate asset class.
3. Positive news and developments: Positive news and developments in the cryptocurrency space have also contributed to the recent relief rally. For example, the recent announcement by PayPal that it will allow its customers to buy, hold, and sell cryptocurrency has been a significant boost for the market.
In summary, the recovery in the U.S. stock market has acted as a catalyst for the relief rally in Bitcoin and select altcoins. This, coupled with increased institutional interest and positive news and developments, has helped to boost the cryptocurrency market. As always, investors should exercise caution and do their due diligence before investing in any asset class.