Bitcoin price has had another positive performance over the past seven days, looking to end the month and start October on a stronger footing. Continuing its resurgence over the past few weeks, the major cryptocurrency rose to a high of $66,000 on Friday, September 27.
Recent data shows that there may be an increasing correlation between the performance of the US stock market and the value of the world’s largest cryptocurrency. The question here is: How can this affect investor behavior?
How did Bitcoin and the S&P 500 perform in September?
In a recent post on Platform X, cryptocurrency intelligence firm IntoTheBlock open The correlation between the price of Bitcoin and the S&P 500 Index, one of the most popular stock market indexes, has reached its highest point in more than two years. To illustrate, the S&P 500 tracks the performance of 500 of the largest publicly traded companies in the United States.
Bitcoin price recorded a surprisingly positive performance in September, a month known to be historically bearish for the major cryptocurrency. According to CoinGecko data, the value of BTC has risen more than 11% in the past month.
Source: IntoTheBlock/X
Meanwhile, the S&P 500 saw a quick and strong rebound, hitting a new all-time high after an initial decline at the beginning of the month. Data from TradingView shows that the index rose almost 4% in September.
The relationship between the stock market and the cryptocurrency market has always been interesting, as investors look to take advantage of the opportunities the market offers. However, the strong correlation between these two asset classes narrows the diversification opportunities they offer to investors.
As of this writing, Bitcoin’s price is around $66,024, reflecting just a 1.1% increase over the past 24 hours. Meanwhile, the S&P 500 is still hovering around 5.8K, with a 0.4% rise in the past day.
Global liquidity rises by $1.426 trillion in a week
Popular cryptocurrency expert Ali Martinez has taken to the X platform to do just that Share There is a noticeable boom in the volume of capital in global financial markets. Data provided by Martinez shows that global liquidity jumped by $1.426 trillion last week.
Global liquidity rose by $1.426 trillion this week, reaching $131.6 trillion. #Bitcoin Other risky assets are gaining, although this liquidity boost may last until October. pic.twitter.com/PtFDjkR7wU
– Ali (@ali_charts) September 27, 2024
Bitcoin and other risky assets have been the main beneficiaries of rising global liquidity, as their value has risen due to increased capital inflow. Martinez also noted that this increase in liquidity may continue until 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