
Bitcoin Shows Strong Divergence from Equities as BTC Price Drops Under $60,000
Bitcoin’s major divergence from the US equity market comes amid forced selling by BTC miners in order to cover their operational costs.
Bitcoin’s major divergence from the US equity market comes amid forced selling by BTC miners in order to cover their operational costs.
Bitcoin price has struggled to rally beyond $72K despite its dominance against altcoins rallying further against all odds.
This resurgence in Bitcoin price is partially credited to the uptick in holdings among whale wallets containing over 1,000 Bitcoins.
The stock market reacted negatively to the Fed Chair’s comment indicating that the apex bank was uninterested in rate cuts until after March.
While all three major indexes rose, the S&P 500 hit a new record barely a week after setting a previous one.
The Dow has hit a new record, while other indexes also increased, as traders believe the Fed will leave interest rates unchanged.
The three major indexes, the S&P 500, the Dow, and the Nasdaq are enjoying a continued rally as the market hopes for rate cuts.
There was a general rise in the Dow, S&P 500 and Nasdaq Composite indexes following hints that the Fed policy would favor the general market.
With yesterday’s historic high, the Dow Jones extends its Q4 rally to more than 10%. On the other hand, the technology sector also makes a fresh all-time high.
The gains have come while traders await the conclusion of the final Fed meeting of 2023.
Stock futures are mixed after the Dow Jones Industrial Average closed its best month in more than a year.
Following the release of the CPI report, Fed-funds futures pricing data indicated that rates are likely to remain steady at the next Federal Reserve policy meeting.
The stock market’s decline coincided with a significant increase in bond yields. However, market experts remain cautiously optimistic about the overall trajectory.
Fed Chair Jerome Powell said that if is required, they won’t hesitate to rise interest rates further in order to bring the inflation to its desired target of 2%.
The Dow had the weakest performance among the three major indexes during Tuesday’s session, primarily due to several declining stocks.