Bitcoin (BTC) Briefly Rose Above $60K But Gave Up Gains to Trade Around the $60K Mark, Mimicking Moves in Equities Markets
- WBOYOriginal
- 2024-08-10 03:16:301178browse
Bitcoin's correlated movements with traditional equities markets have shown that the cryptocurrency can still act as a risk-on asset at times.
Key points:
Bitcoin (BTCUSD) rose briefly above $60,000 on Thursday, tracking the recent rally in equities, but gave up some of those gains to trade on either side of the $60,000 mark, depending on where stocks moved.
This comes after the cryptocurrency crashed below $50,000 for the first time since February on Monday, amid one of the worst days for stocks in recent history.
Bitcoin's correlation with stocks
Much like Monday's price drop came in the midst of broader global market turmoil, the price recovery and eventual reversal mirrored what occurred in traditional equities markets this week.
In particular, bitcoin's correlated movements with traditional equities markets showed that the cryptocurrency can still act as a risk-on asset at times, despite hopes that it will serve as a safe haven during periods of economic uncertainty.
According to Pearson correlation data from The Block, bitcoin moved more in tandem with the S&P 500 than gold this week, despite the "digital gold" moniker that has been frequently applied to the asset.
However, many bitcoin holders were not surprised by this week's price action. "In a crisis, markets sell what they can, not what they want," Strike CEO Jack Mallers posted on X on Monday. "#Bitcoin is down because it was the only market open to sell on Sunday night, not because the only fixed supply money we have is now less valuable."
Bitcoin ETFs return, still negative for the week
The U.S. spot bitcoin exchange-traded fund (ETF) market also saw a strong inflow of $194.6 million on Thursday, according to Farside Investors. However, the flows are still negative on a net basis this week, with $77.3 million exiting the funds.
Things have looked brighter for the spot ether ETFs this week, with $120.6 million of inflows, as outflows from the Grayscale Ethereum Trust (ETHE) have slowed, even as ether prices (ETHUSD) continue to fall. Ether is trading at around $2,500.
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