By Michael Scott
Bitcoin price jump to surpass $67,000 outshines the Wall Street bullish momentum despite the S&P 500 33% uptick during the same span.
Bitcoin’s solid rally by 3% in the past 24 hours to revisit late July price levels leaves investors delighted with the start of the historical October bull run dubbed ‘Uptober’. The sudden movement in the world’s largest crypto coincides with the S&P 500’s 32.96% upward trajectory for the past year, per Market Watch data. However, Bitcoin’s 144% leap in the past year crushes the S&P 500 upswing to 5,870.
Equities Bull Run Lifts S&P 500 to Peak Levels
The S&P 500 resilient rise led to a peak on Friday with the bull run for the US equities following the improved macroeconomic data. While the crypto market has witnessed muddled enthusiasm for months, on-chain data shows Bitcoin shares the uptrend during this span.
Opening Bell Daily, a financial publication, shows an over 60% climb by the S&P 500 to 5,8000 points. The leap represents Wall Street’s journey from the bear market witnessed two years ago. The Bitcoin price has within this period surged 220% from $20,000 to trade above $67,000. It represents Bitcoin’s 144% climb in the past year.
Bitcoin’s uptrend momentum surpasses the tech-heavy Nasdaq composite, which rose 78% in the past two years from 10,300 to 18,350 points. In the past year, the Nasdaq rose from 13,567.98 to 18,315 points.
The uptrend replicates the Dow Jones Industrial Average with a 43% uptick from 29,300 to 42,800 points in the past two years. The Dow Jones Industrial points grew by 26.76% in the last 12 months, but Wall Street’s bull run was still unable to match Bitcoin’s 144% leap during this period.
Bitcoin has battled for months to reclaim its peak price. Nonetheless, analysts have repeatedly drawn mirrored patterns of Bitcoin and the leading stock index. The correlation ranges from macroeconomic factors to exchange-traded products (ETPs), which provide traditional investors with exposure without needing crypto.
Bitcoin Uptrend Momentum Outshines S&P 500
A glance at the history shows Bitcoin hit bottom below $14,500 in November 2022 following contagious panic following the sudden collapse of the FTX crypto exchange. Coincidentally, the S&P 500 tumbled to 3,600 points as the US central bank adopted a hawkish policy to raise interest rates.
The Bitcoin swelled to set peak levels above $73,000 in Q1 this year, the S&P 500 tested record territory. The S&P 500 index would notch higher while Bitcoin slipped to $54,000. At press time, the BTC price is 11.3% up in the past seven days to change hands at $67,980, though 7.9% away from the ATH at $73,737.94.
A section of analysts believe in BTC price breakout in Q4. The head analyst at Bitget Research, Ryan Lee, priced BTC in a $50K-$80K range, attributing that potential influence to the US presidential election.
The comparable returns realized by the S&P 500 and BTC partly arise from the increased balance sheet for the Federal Reserve since 2007-08. Amberdata derivatives head Greg Magadini indicates in the representative of the ownership and debt held by the Fed that the asset classes are the greatest beneficiaries of higher liquidity that surpasses $7 trillion.
The executives illustrate that the financial crisis events are replicated while the rates are higher. Notably, it points towards the substantial rise from the bank balance sheet of $800 billion.
Market maker GSR researcher Brian Rudick considers BTC and the S&P 500 to have overlapping bull runs. The research head considers such a partial coincidence with the Bitcoin surge attributed to the unveiling of spot Bitcoin ETFs.
Spot Bitcoin exchange-traded funds (ETFs) have realized over $18.6 billion since their January unveiling. The ETFs opened up a critical avenue for speculating on the BTC price. Rudick considers such as impactful for Bitcoin.
Rudick notes that the BTC correlation with equities has historically been low. Nevertheless, the attraction of institutional investors alters the Bitcoin dynamic. As crypto turns institutionalized, the digital assets will likely align with the other asset classes.