Investing.com – Bitcoin shrugged off the slump that hit global markets as it surged to its highest level in more than 19 months, a sign of a breakaway from other assets.
The token rose 5.8% to $42,000 on Monday and was slightly below that level in Asian morning trade on Tuesday. On the other hand, global stock and bond indices have been suffering losses since the beginning of the week.
You can enjoy exceptional discounts of up to 55% on one instrument InvestingPro You can get an additional 10% off when you use the coupon SAPRO2
Subscribe from here
Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors, emphasized in his note that this discrepancy in performance reflects the current weak correlation between digital currencies and other traditional assets.
Bitcoin’s relationship with stocks and gold eased in 2023 as crypto-specific factors fueled a 152% rally in the biggest digital asset. A key driver of the gains was the expectation that the US will allow the first bitcoin exchange-traded funds, which could expand demand for the token.
The 90-day correlation coefficient between Bitcoin and the MSCI World Equity Index has dropped to 0.18 from 0.60 earlier this year. A similar study of the relationship between digital currency and the current price of gold drops this figure to almost zero instead of 0.36.
US and regulatory matters
Another industry-specific driver is formal regulation. Cryptocurrency executives believe the worst run of US official crackdown on the sector is over.
In the past few weeks, Sam Bankman-Fried has been jailed for the FTX fraud, while major cryptocurrency exchange Finance and its founder Changpeng Zhao were fined after pleading guilty to anti-money laundering offenses and violating US sanctions.
“The US authorities and regulators have already made their point,” Lucy Kazmararian, managing partner at Dockenbay Capital, told Bloomberg TV. “Now we can see more dialogue happening with regulators.”
Some technical indicators, such as momentum action known as the 14-day relative strength index, suggest that Bitcoin’s rally could be extended. The index is at 75, which is considered overbought above the 70 level.
At the same time, speculative interest is fueled by predictions that the SEC will give the green light to bitcoin ETFs in the US by January. Investors felt spurred by bets on Federal Reserve interest rate cuts next year.
Online brokerage Robinhood Markets Inc said in a filing on Monday that virtual currency trading volumes for November were roughly 75% higher than October levels.
Whether BitCoin’s rise continues will “certainly become clear once the decision on Bitcoin ETFs is reached,” research provider Kyco wrote in a note.
The combined market capitalization of the crypto market at these moments of today’s trading is around $1.54 trillion. According to data available at Investment Saudi Arabia, the trade volume reached approximately $77.53 billion.
It rose by 0.2% in the last 24 hours to $41,465, while weekly gains were 11.8%. Its market cap now stands at $812 billion.
Meanwhile, “”, the largest digital currency by market value after Bitcoin, fell about 2% in the past 24 hours to reach $2,194, weekly losses of 9.2%, and a market value of about 264 billion.
The price of Binance Coin fell 1.1% to $229.
Losing approximately 3.2% of its value, it registered $0.60909 and rose 1.6% in the last 7 days.
It has fallen 6.2% to $59.66 in the last 24 hours and is up 8.1% in the last 7 days.
It declined by 2.4% to $0.3978, while rising 6.8% in the last 7 days.
At the same time, it was down 1.8% at $0.087731.
Warning: Please note that all price forecasts or analysis are the property of their author, Investing Saudi Arabia has no affiliation with them and is not responsible for them. Please note that trading sector is a high risk sector, so be careful before taking any decision on this website (Investing Saudi Arabia) and any action you take is entirely at your own risk. Invest in Saudi Arabia shall not be liable for any losses and/or damages arising from the use of our website.
“Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator.”