Bitcoin beats the heat in a jumpin' July

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Bitcoin beats the heat in a jumpin' July
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It's been a good month for bitcoin - and we haven't said that for a while. After months of freefall, it jumped more than 17% in July, its best performance since October.

It's been a good month for bitcoin - and we haven't said that for a while.

Bitcoin's 40-day correlation to the tech-focused Nasdaq now stands at 0.90 - up from 0.41 in January - where 1 means their prices move in perfect lockstep. "It means institutional investors are looking at bitcoin like any other asset," he said. "When the market turns - and it will turn – these institutions will come back and invest in crypto."

However, trading has been thin - indicating plenty of investors gauge it's too early to turn bullish in a deeply uncertain macro backdrop with inflation rampant, and America and Europe staring down the barrel of a recession, not to mention the implosion of some big crypto players. It will likely continue to trade in a tight range of around $20,000, plus or minus 10% to 15%, until there is more clarity over the economy's trajectory, according to Chris Terry, vice-president at lending platform SmartFi.On the flip side, if the United States enters a prolonged recessionary period and the Fed is forced to cut interest rates, bitcoin could benefit, said Russell Starr, CEO of Valour, which creates exchange-traded products for digital assets.

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