Bitcoin and the broader crypto market are recovering despite a downward trend in equity markets, particularly technology stocks, indicating a downward trend. correlation break between the two.
The flagship crypto surged more than 4% in the past few hours to $66,377 at press time, based on CryptoSlate data.
Meanwhile, other top tokens like Ethereum And Solana were up 2.24% and 7.8%, respectively – with ETH trading at $3,482 and SOL at $170 at press time.
Technological correlation
The crypto market saw a significant rise in early trading in New York, hitting new monthly highs despite most stocks falling simultaneously. This is a notable break in the correlation between crypto and tech stocks, in particular, which have mostly moved in tandem since around 2020.
The correlation has often been linked to growing adoption by institutional investors, who view Bitcoin and other cryptocurrencies in the same light as tech stocks, leading to synchronized trading patterns.
Studies have shown varying degrees of correlation between Bitcoin and tech stocks. For example, during certain periods, the correlation coefficient between Bitcoin and the NASDAQ-100 index (which is technology-heavy) has increased, indicating a stronger relationship.
Despite the increasing correlation, there are still periods where Bitcoin and tech stocks diverge due to unique events affecting the crypto market, such as regulatory news or significant developments in blockchain technology.
Upward market trend
Bitcoin’s latest rally is fueled by several factors, the biggest of which are rumors that former President Donald Trump might consider announcing its intention to make BTC a strategic reserve asset for the United States.
Trump has completely adopted a pro-crypto stance in recent weeks as the issue has become increasingly important to many voters. He harvested widespread support among tech and crypto industry leaders, who believe its policies will be more favorable to both sectors.
Strong support from a currently favored presidential candidate has given Bitcoin further momentum after it fell to its lowest level in several months amid recent selling in Germany.
Meanwhile, Solana has outperformed most of the top 10 tokens as the meme frenzy continues to grip the community despite a significant slowdown from the start of the year. SOL’s latest rally also led to a notable increase in many of the top memecoins.
SOL’s momentum is primarily due to increased adoption and hopes that it will be the next token to get the ETF treatment. Some companies have already filed applications for a Solana spot ETF.
Bitcoin Market Data
At the time of going to press 8:23 p.m. UTC July 19, 2024, Bitcoin is ranked #1 by market capitalization and the price is up 5.5% in the last 24 hours. Bitcoin has a market capitalization of $1.32 trillion with a 24-hour trading volume of $34.24 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of going to press 8:23 p.m. UTC July 19, 2024the total crypto market is valued at $2.44 trillion with a 24 hour volume of $78.74 billion. Bitcoin dominance is currently at 54.28%. Learn more about the cryptocurrency market ›