BTC-Newswire

Stocks Are Down, Bitcoin Is Way Up—Will This Time Be Different?

Press Releases Crypto News DeCrypt Stocks Are Down, Bitcoin Is Way Up—Will This Time Be Different?

Bitcoin pushed past $35,000 on Wednesday amid growing fervor for a spot Bitcoin ETF. And analysts see mounting hype as the dominant force that’s pulling crypto ahead, while stocks on Wall Street appear relatively tepid.

“You can’t state that the run-up on Monday was due to anything else,” K33 Senior Analyst Vetle Lunde told Decrypt. “The market is reacting, although with a lagged effect, to the increased likelihood of a spot ETF’s approval.”

Bitcoin has surged 24% over the past week, according to CoinGecko. Meanwhile, the S&P 500 has dropped 2.5% over the past five trading days, and the tech-heavy Nasdaq Composite has slipped 3.3% during that same span.

An ETF is a publicly traded investment vehicle that tracks the price of an underlying asset. For Bitcoin, Lunde said it’s “a huge potential catalyst for inflows” because institutions and retailers would have an easier time getting exposure to the coin.

Bitcoin’s correlation to equities has trended down over the past year, but the coin moved in tandem with stocks for much of 2022, per K33 Research. Before its recent rise, Bitcoin’s correlation to stocks had already softened significantly, Lunde said.

“The correlation story has changed quite a lot in the past year, and that’s something that should be acknowledged by market participants,” he said. “But it takes time.”