Bitcoin (BTC) has consolidated gains nearer $8,000 — but does the coming week have in shop for the asset leaving stocks in the dust?

After jumping 10% in a solar day last calendar week, BTC/USD has managed to keep hold of its gains over the weekend. Cointelegraph considers the major factors which traders should keep an eye on to avert a nasty surprise.

New alarm bells for stocks

Stocks keep to move higher, and Bitcoin continues to move in line with stock marketplace sentiment.

While reducing its correlation in recent weeks, Bitcoin notwithstanding remains sensitive to major moves on Wall Street. This calendar week, prices there go on to trend upward, but all is not what it seems, analysts warn.

"Sharp declines in market breadth in the past have oftentimes signaled large market drawdowns," Bloomberg quoted strategists at Goldman Sachs equally saying on April 27.

Narrow latitude can last for extended periods, but past episodes have signaled beneath-average market returns and eventual momentum reversals.

Bitcoin versus S&P 500 3-month chart

Bitcoin versus S&P 500 3-calendar month nautical chart. Source: Skew

The warning that current swift gains could turn to losses capitalizes on existing concerns about the paradoxical status quo on markets. Despite millions of newly unemployed, pocket-sized business organisation implosions and trillions of dollars of coin printing, stocks keep improving.

Oil prices lose big equally trading begins

Oil is steaming ahead with its protracted sell-off. In Asian morning trading on Monday, WTI plunged by almost x%, while Brent slumped 3.2% to most $twenty a barrel.

No respite seems in sight for a market hammered past unprecedented negative prices last calendar week — need is unlikely to selection up for several months, while storage facilities have all only run out.

A previous effort by OPEC+ countries to cut production was non enough, commentators have said.

Bitcoin is overall impacted less by oil'south issues than those of other markets.

The money press automobile keeps turning

Central banks continue to pump more worthless greenbacks into the stricken and increasingly "neo-feudal" economy.

On Monday, it was the Banking company of Japan'southward turn to announce a flood of paper, signaling it would buy unlimited bonds in gild to incentivize borrowing.

Questions remain over whether the United States Federal Reserve and European Cardinal Bank volition follow suit, the former having already inflated its rest canvass to a record $half-dozen.6 trillion.

Bitcoin fundamentals steadily improve

For Bitcoin network participants, meanwhile, the motion-picture show is increasingly — and verifiably — positive.

Hash rate has recovered well since it dipped post-obit the March toll crash, consolidating at around 115 quintillion hashes per 2nd (h/s). According to estimates from Blockchain, this is just seven quintillion h/southward below all-time highs seen earlier last month.

Mining difficulty is as well set for a healthy uptick of three.2% at the next adjustment in around eight days' time. This follows a larger viii.5% boost that Cointelegraph reported on previously.

Overall implied volatility, monitoring resource Skew notes, is now as well almost back at early March levels.

BTC ATM Implied Volatility

Analyst dispels myths over May halving downturn

It is at present just over 2 weeks until the 3rd Bitcoin block advantage halving. At that point, Bitcoin's block subsidy will drop from 12.5 BTC to 6.25 BTC per cake.

This reduces miner income significantly, while too drives up Bitcoin's stock-to-flow ratio, equally at that place will be fewer "new" Bitcoins created relative to the existing supply.

Some analysts take become worried that the drop in revenue will spark problems for miners, but the creator of the seminal stock-to-menstruum cost model for Bitcoin now believes otherwise.

"2012&2016 halving data shows that difficulty will NOT adapt downward, just will keep rising post halving," a tweet from PlanB on Friday reads.

Miners have ALREADY invested in new hw and are prepared for -50% revenue.