Bitcoin and the broader crypto market are rallying regardless of a downtrend within the equities markets, notably in tech shares, pointing to a breakdown in correlation between the 2.
The flagship crypto surged over 4% over the previous few hours to $66,377 as of press time, primarily based on CryptoSlate knowledge.
In the meantime, different prime tokens like Ethereum and Solana have been up 2.24% and seven.8%, respectively — with ETH buying and selling at $3482 and SOL at $170 as of press time.
Tech correlation
The crypto market recorded a big surge as New York buying and selling started, climbing to new month-to-month highs regardless of most equities falling on the identical time. It is a notable breakdown within the correlation between crypto and tech shares, particularly, which have largely moved in tandem since roughly 2020.
The correlation has usually been linked to rising adoption amongst institutional traders, who view Bitcoin and different cryptocurrencies by the same lens as tech shares, resulting in synchronized buying and selling patterns.
Research have proven various levels of correlation between Bitcoin and tech shares. As an illustration, throughout sure durations, the correlation coefficient between Bitcoin and the NASDAQ-100 index (which is tech-heavy) has elevated, indicating a stronger relationship.
Regardless of the rising correlation, there are nonetheless durations when Bitcoin and tech shares diverge resulting from distinctive occasions affecting the crypto market, comparable to regulatory information or vital developments in blockchain know-how.
Market uptrend
Bitcoin’s newest rally is fueled by a number of elements, probably the most outstanding of that are rumors that former President Donald Trump could plan to announce intentions to make BTC a strategic reserve asset for the US.
Trump has absolutely pivoted to a pro-crypto stance in current weeks as the difficulty has grow to be more and more essential amongst many citizens. He has garnered widespread help amongst tech and crypto business leaders, who consider his insurance policies shall be extra favorable for each sectors.
Sturdy help from a Presidential candidate at the moment favored to win has given Bitcoin new momentum after it fell to a multi-month low amid Germany’s current gross sales.
In the meantime, Solana has been outperforming a lot of the prime 10 tokens as meme frenzy continues to grip the neighborhood regardless of a big slowdown in comparison with earlier within the yr. The most recent rally in SOL has additionally led to a notable improve in a lot of the prime memecoins.
SOL’s momentum is primarily pushed by elevated adoption and the expectation that it is going to be the following token to get the ETF remedy. Some corporations have already filed functions for a spot Solana ETF.
On the time of press 8:23 pm UTC on Jul. 19, 2024, Bitcoin is ranked #1 by market cap and the worth is up 5.5% over the previous 24 hours. Bitcoin has a market capitalization of $1.32 trillion with a 24-hour buying and selling quantity of $34.24 billion. Be taught extra about Bitcoin ›
On the time of press 8:23 pm UTC on Jul. 19, 2024, the full crypto market is valued at at $2.44 trillion with a 24-hour quantity of $78.74 billion. Bitcoin dominance is at the moment at 54.28%. Be taught extra concerning the crypto market ›
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