thejoyofsaving.comThe correlation of Bitcoin with gold, Nasdaq Composite, and S&P 500 currently stands at -0.02, -0.06, and 0.18, respectively.
The $27,000 mark has been broken by Bitcoin for the first time this month. The rise occurred when the link between Bitcoin and the stock market and gold decreased. As of right now, Bitcoin’s connection with gold, the Nasdaq Composite, and the S&P 500 are, respectively, -0.02, -0.06, and 0.18.
Bitcoin Price Breaks Above $27,000
Cryptocurrencies continued to rise on Monday, with the top coin crossing the $27,000 threshold. On Monday, the price of bitcoin rose by 3.7% to $27,418 before losing some of its gains and dropping below the symbolic $27,000 mark.
The leading cryptocurrency is currently trading at $27,167.90, essentially unchanged from yesterday. The price of the coin has increased by over 4% over the last seven days and by almost 5% over the last month. Even still, it has decreased more than 60% from its peak, which was over $69,000 in November 2021.
Prior to the Federal Open Market Committee (FOMC) meeting, which will take place on September 19–20, the price increased. The Federal Reserve anticipated maintaining stable borrowing rates throughout the meeting. Higher rates tend to make riskier investments like cryptocurrency less appealing.
“Bitcoin maintained stable after a protracted battle at the psychological support of $25,000. According to Quantum Economics CEO Mati Greenspan, range traders will now be aiming to take gains slightly over $30,000.
There is no obvious cause for the price increase, according to some analysts, therefore the surge may not endure. Senior research analyst at Kaiko, Dessislava Ianeva, stated:
“I don’t see a clear catalyst for the move up. In the current low liquidity environment, relatively low buying/selling pressure could amplify spot price movements and spur liquidations on derivatives markets.”Bitcoin Correlation to Gold, Equities Drop
The current Bitcoin rise occurred when the currency’s link to the stock market and gold declined. The 30-day correlation between the top cryptocurrency and gold, the Nasdaq Composite, and the S&P 500 is now at -0.02, -0.06, and 0.18, respectively, according to data from The Block.
Between -1 and 1, the indicator defines the correlation. They are strongly connected if the result is very near to 1, but the converse occurs if the result is close to -1.
The lack of connection indicates that conventional assets are not having an impact on the cryptocurrency market. This is in contrast to earlier this year, when the link between Bitcoin and gold strengthened.
It’s important to note that there seems to be a cyclical pattern in the association between Bitcoin and stocks. The correlation between Bitcoin and gold, according to data from The Block, reached a high of 0.73 in late 2023 but then fell as low as -0.84 in early July.
Nomura’s Laser Digital launches Bitcoin Fund
A Nomura subsidiary, Laser Digital Asset Management, has announced the opening of its Bitcoin Adoption Fund, which is good news for Bitcoin investors. The fund would give institutional investors access to Bitcoin while maintaining the highest standards of risk management and compliance.
According to Sebastien Guglietta, CEO of Laser Digital Asset Management, “technology is a key driver of global economic growth and is transforming a significant portion of the economy from analogue to digital.” “This long-lasting transformational change is one of the things that bitcoin helps to enable.”
In order to protect the assets of the fund, Laser will rely on Komainu, a regulated custody service for institutional investors in digital assets that was established in 2018 by Nomura, Ledger, and Coinshares. Leading institutional investors are served by brokerage services provided by Nomura Holdings, a $500 billion financial behemoth.
Despite this, Bitcoin is currently trading at $27,167.90, roughly unchanged from yesterday. The overall cryptocurrency market has likewise been fairly unchanged over the last day, with most altcoins seeing gains of less than 1%.
