Booming DeFi Craze Decouples Bitcoin From Stock Market

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The last 48 hours of trading have witnessed Bitcoin decoupling from the US stock market. The cryptocurrency traded sideways with a bias modestly shifted towards bears. On the other hand, the S&P 500 moved in the opposite direction. This lack of short-term positive correlation coincides with a booming DeFi craze. Bitcoin appears to have decoupled for the US stock market as one broad phenomenon in the cryptocurrency market takes over traders’ conscience: the DeFi. Also known as Decentralized Finance, the DeFi attributes to the ability to conduct financial operations without requiring a third-party. It comes in many kinds, including derivatives, lending, payments, and exchanges. The hype around the DeFi industry has helped protocol tokens log supersonic price rallies, especially in July. The statistics attest to that. Bitcoin this month has disappointed bulls by fluctuating between marginal profits and losses. As of Thursday, the cryptocurrency was trading 0.19 percent lower on…

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