The value of Bitcoin has demonstrated another strong performance over the past week, poised to conclude the month and kick off October on an even higher note. Continuing its upward trend from recent weeks, the leading cryptocurrency reached a peak of $66,000 on Friday, September 27th.
Recent insights indicate a potentially increasing correlation between the US stock market’s performance and the valuation of the world’s largest cryptocurrency. The pressing question is — how might this affect investor behavior?
How Did Bitcoin And S&P 500 Perform In September?
In a recent report on the X platform, crypto analysis company IntoTheBlock highlighted that the correlation between Bitcoin pricing and the S&P 500, one of the best-known stock indices, has reached its highest level in over two years. For context, the S&P 500 index monitors the performance of 500 of the largest publicly traded companies in the United States.
Remarkably, Bitcoin experienced a strong performance in September, a month historically associated with declines for this leading cryptocurrency. According to data sourced from CoinGecko, BTC has increased by over 11% in the last month.
Source: IntoTheBlock/X
Simultaneously, the S&P 500 index has shown a swift and robust recovery, reaching a new all-time high after an initial downturn at the start of the month. Data from TradingView reveals that the index has risen nearly 4% in September.
The connection between the stock market and the cryptocurrency sector has always been fascinating, as investors seek to capitalize on opportunities in either market. Nonetheless, a strong correlation between these asset classes could limit the diversification benefits they provide to investors.
As of now, Bitcoin’s price is approximately $66,024, reflecting a slight 1.1% increase in the last 24 hours. Meanwhile, the S&P 500 Index remains around 5.8K, with a 0.4% uptick over the past day.
Global Liquidity Surges By $1.426 Trillion In A Week
Renowned crypto analyst Ali Martinez took to the X platform to report a significant increase in global financial market capital. Martinez’s data indicates that global liquidity surged by $1.426 trillion over the last week.
Global liquidity surged by $1.426 trillion this week, hitting $131.6 trillion. #Bitcoin and other risk assets are gaining, though this liquidity boost could roll over into October. pic.twitter.com/PtFDjkR7wU
— Ali (@ali_charts) September 27, 2024
Bitcoin and other risk assets have reaped the benefits of the increased global liquidity, with their prices climbing as a result of the influx of capital. Martinez also pointed out that this liquidity increase might continue into October.
The price of BTC breaks above $66,000 on the daily timeframe | Source: BTCUSDT chart from TradingView
Featured image from iStock, chart from TradingView
