Bitcoin is not just another cipher, it’s a market pulse. And now it tells you exactly what comes next after the NFTS. When Bitcoin sneezes, the NFT market catches a cold. And the correlation is not only noticeable, but also the prediction of boundaries.
By looking at Bitcoin prices, NFT collectors and traders can get a head start on what’s coming. Whether you creep up in the background or spike during a bullish breakout, Bitcoin movements tend to ripple through every nook and cranny of the Web3 space that shapes the emotions, volume and volatility of the entire collection.
Exchanges usually provide real-time data, 24-hour change metrics, and historical charts that many people use to get a better sense of macro trends before they affect floor prices.
Source: CoingeckoBitcoin prices over the years
In early 2021, Bitcoin surged beyond $40,000 for the first time, bringing millions of new eyes to the code as NFTs began making headlines. Within a few weeks, Beeple’s Daily was sold at Christie’s for $69 million, setting the tone of a mainstream NFT explosion. By the second half of 2021, Bitcoin had climbed nearly $64,000, and collections like the boring Ape Yacht Club, Art Blocks and Cool Cats had hit record-breaking reviews.
Of course, the opposite proved equally dramatic. In mid-2022, Bitcoin fell below $20,000. result? The NFT volume has collapsed. According to NonFungible.com, NFT sales volume in June fell by more than 75% compared to January of that year.
This type of contraction does not occur alone. This reflects the flow of capital, confidence and liquidity across the crypto sector.
Source: UnsplashWhy is Bitcoin price movement important for NFT traders?
Understanding market emotions is more than just an atmosphere with tools like fear and greedy indexes, and can help you decipher what investors are feeling depending on the volatility. Also, for NFT traders, these emotional changes are often first shown on Bitcoin price charts.
Meanwhile, builders and investors focused on developing Web3 games or metaverses have begun to align their strategies with the macro crypto cycle.
Floor prices, mint success, and project visibility all depend in part on how well the wider crypto environment is working.
Conclusion
Smart Money is not only looking at NFT lists, but also looking at charts. If you want to go ahead in this market, start with a signal that moves everything else. Often, the signal is Bitcoin.
