[ad_1]
The price of Bitcoin put in another positive performance over the last seven days, looking to end the month and start October on an even stronger footing. Continuing its resurgence over the past few weeks, the premier cryptocurrency climbed as high as $66,000 on Friday, September 27th.
Recent data shows that there might be a growing correlation between the performance of the US stock market and the value of the world’s largest cryptocurrency. The question here is — how could this influence the behavior of investors?
How Did Bitcoin And S&P 500 Perform In September?
In a recent post on the X platform, crypto intelligence firm IntoTheBlock revealed the correlation between the Bitcoin price and the S&P 500, one of the most popular stock market indices, has reached its highest point in more than two years. For clarity, the S&P 500 index tracks the performance of 500 of the largest exchange-listed companies in the United States.
The Bitcoin price registered a surprisingly positive performance in September, a month known to be historically bearish for the flagship cryptocurrency. According to data from CoinGecko, the value of BTC is up by more than 11% in the past month.
Source: IntoTheBlock/X
Meanwhile, the S&P 500 index has undergone a quick and strong recovery, printing a new all-time high after an initial slump at the beginning of the month. Data from TradingView shows that the index is up almost 4% in September.
The relationship between the stock market and the cryptocurrency market has always been intriguing, as investors look to take advantage of opportunities either market offers. Nevertheless, a strong correlation between these two asset classes is deemed to narrow the diversification opportunities they offer to investors.
As of this writing, Bitcoin price stands around $66,024, reflecting a mere 1.1% increase in the past 24 hours. Meanwhile, the S&P 500 Index continues to hover around 5.8K, with a 0.4% rise in the past day.
Global Liquidity Surges By $1.426 Trillion In A Week
Popular crypto pundit Ali Martinez took to the X platform to share that there has been a notable surge in the volume of capital in the global financial markets. Data provided by Martinez shows that global liquidity jumped by $1.426 trillion in the past week.
Global liquidity surged by $1.426 trillion this week, hitting $131.6 trillion. #Bitcoin and other risk assets are gaining, though this liquidity boost could roll over into October. pic.twitter.com/PtFDjkR7wU
— Ali (@ali_charts) September 27, 2024
Bitcoin and other risk assets have been the major beneficiaries of the rising global liquidity, as their values have gained due to the increased capital influx. Martinez also noted that this liquidity boost could roll over into October.
The price of BTC breaks above $66,000 on the daily timeframe | Source: BTCUSDT chart from TradingView
Featured image from iStock, chart from TradingView
[ad_2]
Source link
