Bitcoin price has put in another positive performance over the past seven days, looking to end the month and start October on an even stronger footing. Continuing its rise over the past few weeks, the first cryptocurrency rose to $66,000 on Friday, September 27.
Recent data shows that there may be a growing correlation between the performance of the US stock market and the value of the world’s largest cryptocurrency. The question here is – how would this affect investor behavior?
How Did Bitcoin and the S&P 500 Perform in September?
In a recent post on the X platform, the crypto intelligence company IntoTheBlock revealed that the correlation between the price of Bitcoin and the S&P 500, one of the most popular stock market indices, has reached its highest point in more than two years. To be clear, the S&P 500 index tracks the performance of the 500 largest publicly traded companies in the United States.
Bitcoin price registered a surprisingly good performance in September, a month known to be historically bearish for the main cryptocurrency. According to data from CoinGecko, the value of BTC has increased by more than 11% in the last month.
Source: IntoTheBlock/X
Meanwhile, the S&P 500 index has made a quick and strong recovery, posting a new all-time high after an initial decline earlier in the month. Data from TradingView shows the index rose nearly 4% in September.
The relationship between the stock market and the cryptocurrency market has always been interesting, as investors look to take advantage of market opportunities or offers. However, the strong correlation between these two asset classes is considered to limit the diversification opportunities they offer investors.
As of this writing, the price of Bitcoin is around $66,024, showing just a 1.1% increase in the last 24 hours. Meanwhile, the S&P 500 Index continues to hover around 5.8K, up 0.4% on the previous day.
Global Liquidity Increases By $1.426 Trillion In A Week
The famous crypto expert Ali Martinez went to the X site to share that there has been a significant increase in the volume of money in the global financial markets. The data provided by Martinez shows that the global currency exceeded $ 1.426 trillion last week.
Global liquidity increased by $1.426 trillion this week, reaching $131.6 trillion. #Bitcoin and other riskier assets are benefiting, although this increase may extend into October. pic.twitter.com/PtFDjkR7wU
– Ali (@ali_charts) September 27, 2024
Bitcoin and other risk assets have been the biggest beneficiaries of the global financial boom, as their prices have benefited from capital gains. Martinez also noted that this increase may continue in 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