- Over 1% was lost by the S&P 500, while 0.5% was lost by the NASDAQ-100.
- In the last 24 hours, BTC has risen by more than 5%, trading at $20.2K now.
Astoundingly, the cryptocurrency market has surged. Bitcoin’s price has risen from the $18,000-$19,000 level to the $20,000 mark. Over the last 24 hours, it has risen by more than 5%, trading at $20.2K now. Bitcoin, on the other hand, hopes to buck the trend of falling stock prices.
For the first time since the integration, Ethereum is also witnessing a robust surge. In only 24 hours, Ethereum has gained almost 6%, putting it on track to break the $1,400 barrier. ETH is presently trading at $1385 as per CMC.
Strong Correlation Fading?
Some of the most notable gainers in the cryptocurrency market were Solana (+7%), Polygon (+5%), and Terra Classic (+56%). In light of the recent stock market sell-off, the cryptocurrency market’s recent surge comes as somewhat of a surprise. Over 1% was lost by the S&P 500, while 0.5% was lost by the NASDAQ-100. There is a robust relationship between the cryptocurrency market and the overall market.
According to findings from Coinbase Research, the beta between cryptocurrency and the conventional market is 2. Its behavior is similar to that of the NASDAQ and other technology equities. There was no link between the two before the year 2020. To be an effective inflation hedge, Bitcoin must maintain its value even when the market as a whole is falling.
However, Bitcoin is still subject to the stock market. Bitcoin’s recovery is due to less speculation than the S&P 500. Just as cryptocurrency did not recover as quickly as the S&P 500, neither is it now collapsing at the same rate.
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