Bitcoin
Bitcoin (BTC) Price Rebounds Along with S&P 500 and Nasdaq as Cryptocurrencies Fall Along with Stocks
While bitcoin (BTC) has struggled in recent months, with its price down more than 20% since hitting a record high in mid-March. U.S. stocks — represented by the Nasdaq Composite and the S&P 500 — appear to be on a one-way path to the upside.
Both stock averages closed in the green for the seventh straight day on Wednesday, with both hitting all-time highs. For the S&P 500, it was its 37th record close of 2024 and for the Nasdaq, its 27th. according to MarketWatch.
A report yesterday in the Block noted that bitcoin’s correlations with these indicators have fallen to multi-month lows — to minus 0.84 with the Nasdaq and minus 0.82 with the S&P 500. (A reading of minus 1 would mean they are moving essentially the same amount but in opposite directions.)
That’s not the case today. They’re all moving in sync. But unfortunately for the bulls, it’s as if stocks have fallen sharply. As of noon New York time, the Nasdaq was down 1.8% and the S&P 500 was down 0.9%. Bitcoin, which earlier in the session had climbed above $59,000 in welcome news about inflation in the USAis now down 0.6% at $57,500. The broader CoinDesk 20 Index fell 0.4%.
There could be more downside for cryptocurrencies if the stock market’s bad day turns into a broader correction, Joel Kruger, market strategist at LMAX Group, said in a morning update.
“Right now, the biggest risk we see for crypto assets is the risk that highly overbought US stocks could be on the verge of rolling over,” Kruger said. “The correlation is not absolute by any means, but there is evidence to suggest that a sharp pullback in stocks could weigh on crypto, at least for a moment.”