By
Bena Ilyas
April 16th, 2024
Bitcoin has finally managed to break the $40,000 barrier. In the last seven days, it has lost as much as 5.85%. In the last month, it has dipped by 17.2%.
The current bearish market provokes a logical question: is it a correlation or downturn before rebound? Now, the crypto market is slowing down, with Bitcoin (BTC) hardly able to break the $40,000 level, S&P 500 index turning negative, and stocks slipping again. However, all these trends have given a green light for gold prices.
What’s Up with Bitcoin?
Bitcoin still remains the top crypto with the largest market cap. However, its price is not at the same record levels it was several weeks ago. As of the press moment, Bitcoin is trading at $40,416.15. As its recent performance shows, Bitcoin was struggling to break the $40,000 barrier, but it managed to do it with some obvious difficulties. In the last seven days, it has lost as much as 5.85%. In the last month, it has dipped by 17.2%.
On Sunday, May 23, the Bitcoin price crashed all the way going closer to its crucial support of $33,000. This crash resulted from China’s regulatory crackdown on crypto miners and traders in the country.
Some believe that Ethereum (ETH) seems to be taking over Bitcoin. For example, Todd Morley, a former investment partner and co-founder at Guggenheim, believes that “Ethereum has higher utility than Bitcoin”. According to Morley, more app developers are now using the Ethereum network, which demonstrates its global recognition.
Meanwhile, NYDIG CEO Ross Stevens remains bullish on Bitcoin, saying that cash is no longer an asset but a liability.
S&P 500 Slightly Drops
While Bitcoin is struggling to rebound, S&P 500 index is slightly tanking, with U.S. stocks fluctuating between small gains and small losses. Yesterday, it closed with a 0.2% drop at 4,188.13. Its major stocks have plunged, with Apple Inc (NASDAQ: AAPL) shares closing 0.16% down, Tesla Inc (NASDAQ: TSLA) stock plunging by 0.29%, Johnson & Johnson (NYSE: JNJ) stock losing 0.28%.
Dow Jones Industrial Average dropped by 81.52 points, 0.2% as well, to 34312.46. Some of its major stock slipped, while others slightly recovered. For example, healthcare stock Amgen (NASDAQ: AMGN) traded 2% lower, while The Boeing Company (NYSE: BA) and The Walt Disney Company (NYSE: DIS) saw solid gains of more than 1% each.
Further, the Nasdaq Composite dropped 4 points, or less than 0.1%, to close at 13657.17 yesterday.
Gold Prices Hit New Peaks
While cryptos and stocks are experiencing not the best times, gold enjoys significant price recovery. Last week, the price of the precious metal reached its highest price level since January 8, hitting $1,889. Notably, this mark became a four-month high after gold prices plunged to $1,681 at the beginning of March.
On Tuesday, gold prices hit $1,887 per ounce at 3:00 am. As of the time of writing, spot gold is trading at $1,909.88, up about 0.62% over the past 24 hours.