Bitcoin ( BTC-USD ) is currently lagging behind U.S. stocks, which are showing signs of recovery following a protracted period of risk-off sentiment, CoinDesk reported . Investors appear to be returning to risk assets - but not bitcoin ( BTC-USD ) - amid reports that inflation may have peaked and commentary from Federal Reserve Chair Jerome Powell indicating that the pace of rate hikes may be eased as soon as its meeting next week . The top cryptocurrency, which usually tracks U.S. markets, is bucking this trend as the collapse of troubled exchange FTX, whose native crypto FTX token ( FTT-USD ) also spiralled, has done far more damage to sentiment in the crypto space. Bitcoin ( BTC-USD ) is currently flat at $17.1K, firmly below its 200-day moving average . On the other hand, major market indices - S&P 500 ( SP500 ), Dow Jones ( DJI ) and Nasdaq Composite ( COMP.IND ) - are all trading above their respective 200-day moving averages. "Without the FTX implosion, bitcoin might have been trading at $29K by now - instead of $17.2K (or +69%). But with a supportive macro backdrop, those levels might be achieved in 2023," said Markus Thielen , head of research & strategy at crypto services firm Matrixport. Thielen expects "a weaker greenback would support crypto prices and with declining inflation expectations, macro would become a tailwind for risk assets and crypto". Bitcoin slipped to a two-year low of $15.5K last month as the contagion from the FTX implosion continued. Standard Chartered believes bitcoin ( BTC-USD ) will spiral further and could tank another ~70% to $5K in 2023 . But Bank of America believes the increased regulatory scrutiny after the FTX fallout may enable greater institutional engagement and accelerate industry maturity .