Bitcoin‘s correlation with Wall Street has risen steadily in recent months, reaching a multi-year high earlier this week. This is because major U.S. stock market indexes, including the Dow Jones and S&P 500, hit record highs. The recent Federal Reserve interest rate cut and U.S. macroeconomic data, showing inflation slowed to 2.2%, boosted both stocks and crypto markets.
The Dow Jones surged to an all-time high of 42,616 before slightly retreating, while the S&P 500 also reached a new peak before closing at 5,738. Meanwhile, Bitcoin’s price climbed above $66,500, marking a two-month high and pushing its correlation with U.S. stock markets to levels not seen in two years, according to IntoTheBlock data.
Additionally, Bitcoin’s correlation with gold has also risen, with the precious metal reaching a near-record price of $2,690 per ounce. The high correlation between Bitcoin and traditional assets like stocks and gold raises the question of when BTC will break its previous all-time high of $73,800, set in March.
Historically, Bitcoin has performed well in Q4, with an average return of 90% over the past decade. October and November have been its most bullish months, suggesting that a new all-time high for Bitcoin could be on the horizon.
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