bitcoin price had another positive performance over the past seven days, looking to end the month and start October on an even stronger footing. Continuing its resurgence in recent weeks, the leading cryptocurrency rose as high as $66,000 on Friday, September 27.
Recent data shows there could be a growing correlation between the performance of the US stock market and the value of the world's largest cryptocurrency. The question here is: how could this influence investor behavior?
How did bitcoin and S&P 500 perform in September?
In a recent post about Platform x, crypto intelligence company IntoTheBlock x.com/intotheblock/status/1839689640162255198″ target=”_blank” rel=”noopener nofollow”>revealed The correlation between the price of bitcoin and the S&P 500, one of the most popular stock indices, has reached its highest point in more than two years. For clarity, the S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States.
bitcoin price posted a surprisingly positive performance in September, a month known to be historically bearish for the flagship cryptocurrency. According to data from CoinGecko, the value of btc has increased by more than 11% in the last month.
<img decoding="async" class="aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/09/Bitcoin-correlation-with-SP-500-hits-2-year-high-What-this.jpeg" alt="bitcoin” width=”1011″ height=”513″/>
Source: x.com/intotheblock/status/1839689640162255198" target="_blank" rel="noopener nofollow">IntoTheBlock/x
Meanwhile, the S&P 500 index has seen a rapid and strong recovery, reaching a new all-time high after an initial drop 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 intriguing, as investors look to take advantage of the opportunities that either market offers. However, a strong correlation between these two asset classes is considered to reduce the diversification opportunities they offer to investors.
At the time of writing, the price of bitcoin is around $66,024, reflecting an increase of just 1.1% in the last 24 hours. Meanwhile, the S&P 500 index continues to hover around 5.8k, up 0.4% over the past day.
Global liquidity increases by 1,426 trillion dollars in a week
Popular crypto expert Ali Martínez turned to platform x.com/ali_charts/status/1839646169271500909″ target=”_blank” rel=”noopener nofollow”>share that there has been a notable increase in the volume of capital in global financial markets. Data provided by Martínez shows that global liquidity increased by $1.426 trillion last week.
<blockquote class="twitter-tweet” data-width=”500″ data-dnt=”true”>
Global liquidity increased by $1.426 trillion this week, reaching $131.6 trillion. twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoin and other risk assets are gaining, although this liquidity boost could last into October. pic.twitter.com/PtFDjkR7wU
– Ali (@ali_charts) twitter.com/ali_charts/status/1839646169271500909?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>September 27, 2024
bitcoin and other risk assets have been the main beneficiaries of rising global liquidity, as their values have gained due to increased capital inflows. Martínez also pointed out that this increase in liquidity could last until October.
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The price of btc breaks above $66,000 on the daily timeframe | Source: BTCUSDT chart from x/cnHiiDfI/" target="_blank" rel="noopener nofollow">TradingView
Featured image from iStock, chart from TradingView
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