As Traditional Markets Shake, Bitcoin Price Continues to Show Resilience!

  • Despite the intensification of macroeconomic conditions, Bitcoin has exhibited notable resilience by holding steadily around $26,000.
  • Yields are increasing along the yield curve, but what’s particularly noteworthy is the 10-year Treasury yield surpassing 4.5% and the 30-year yield exceeding 4.6%.
  • While chaos prevails in traditional markets, there has been a significant decrease in Bitcoin’s correlation with U.S. markets.

Despite the turmoil in traditional markets, Bitcoin prices remain solid: Current rates and correlation of Bitcoin and Ethereum with US markets!

Amid Turmoil in Traditional Markets, Bitcoin Holds Strong

bitcoin-btc

Despite the intensification of macroeconomic conditions, Bitcoin has exhibited notable resilience by holding steadily around $26,000. This is a significant observation considering the instability in traditional markets. The Japanese yen is rapidly losing value against the dollar, currently standing at 149, indicating turmoil in the Asian financial space.

Across the globe, the British pound has maintained stability against the dollar throughout the year, positioning itself at 1.21, reflecting stability amid the chaotic environment. However, a clear change in the global financial landscape emerges when we focus on the bond market. Yields are increasing along the yield curve, but what’s particularly noteworthy is the 10-year Treasury yield surpassing 4.5% and the 30-year yield exceeding 4.6%. These figures indicate cycle highs unseen since 2007, signaling a potential turbulence.

The DXY index, with 11 consecutive weeks of continuous gains, has risen above 106, experiencing its best run in over a decade.

In this evolving economic scenario, Bitcoin’s stability highlights its potential as ‘digital gold’ and further solidifies its position in the world of finance.

DXY-GBP-USDJPY
DXY, GBPUSD and USDJPY Chart

Correlation Between Bitcoin and U.S. Markets

While chaos prevails in traditional markets, there has been a significant decrease in Bitcoin’s correlation with U.S. markets. Bitcoin exhibited a high correlation with U.S. markets from late August to mid-September, but as of today, it shows a very low correlation.

The table below illustrates how Bitcoin and Ethereum have correlated in performance with other indexes:

bitcoin-ethereum-us-market-correlation
Bitcoin & Ethereum vs US Market Correlation

As shown in the table, the current correlation between Bitcoin and the U.S. dollar index (DXY) has dropped to 0. Additionally, Bitcoin’s correlation with stock indexes remains negative.

In the case of Ethereum, it continues to exhibit a negative correlation with the DXY index, while it shows a positive correlation with U.S. stock markets.

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