Pioneer cryptocurrency Bitcoin (BTC), has long been considered together with stocks, and the correlation between them was considered a remarkable issue. In the current market situation, Bitcoin is trading around $19,400. Ethereum is performing similarly, trading almost steady around $1,311.
US stocks, on the other hand, ‘turned’ in a way that the crypto money bulls did not like and started to rise.
The S&P 500 index rose 1.9 percent and was ‘green’. A similar scenario was seen in the technology-heavy Nasdaq index with a rate of 2.2%, and the upward line widened. Big names like Amazon, Microsoft and Meta Platforms are leading this rally. The Dow Jones Industrial Average also rose sharply, adding more than 500 points.
Stocks were up on Monday, posting impressive gains. Investment bank shares beat expectations and led the rally as Goldman Sachs rose roughly 4%.
The market is now once again in rally mode as the earnings season continues.
But that optimism may be an early celebration as future rate hikes are on the way. It is quite possible that the US Federal Reserve will raise the benchmark interest rate by 75 basis points in November. The US labor market continues to resist despite the Fed’s persistent efforts to cool it down.
Dubravko Lakos-Bujas, JPMorgan’s head of global macro research, believes that the performance of stocks will largely depend on the monetary policy decisions of central banks around the world.
The strong correlation between US stocks and the cryptocurrency market has been one of the highlights of the past year. Bitcoin trades closely with the Nasdaq, so crypto traders prefer to keep a close eye on macro data to navigate the market.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.