- Bitcoin and other cryptocurrencies experienced a slight uptick on Friday, but remained relatively low over the weekend.
- As the ETF frenzy subsides, there is evidence that Bitcoin is becoming more correlated with stocks, Dow Jones Industrial Average, and S&P 500 indices.
- Apart from Bitcoin, the second-largest cryptocurrency, Ether, saw a slight increase to $2,256.
Bitcoin and cryptocurrencies are gaining strength with a renewed increase on Friday: What will happen in the market now?
Bitcoin Price is on the Rise Again
Bitcoin and other cryptocurrencies experienced a slight uptick on Friday, but remained relatively low over the weekend. The coming week will bring a significant catalyst for both the stock market and cryptocurrencies.
In the last 24 hours, the price of Bitcoin has increased by 3% to $41,200, hovering around the important psychological level of $40,000 in recent days. The largest cryptocurrency failed to solidify gains obtained after the historic approval of spot Bitcoin exchange-traded funds (ETFs) earlier this month.
This approval initially pushed prices to the highest level since the beginning of 2022, but then the “sell the news” dynamic came into play. Alex Kuptsikevich, an analyst at FxPro broker, stated, “Volatility in the cryptocurrency market continues to remain calm… Bitcoin is still around $40,000,” adding, “The drop in stock indices in the last 24 hours has not been a significant concern for cryptocurrency investors so far.”
Resistance to stock market fluctuations is likely not to continue. As the ETF frenzy subsides, there is evidence that Bitcoin is becoming more correlated with stocks, Dow Jones Industrial Average, and S&P 500 indices.
Next Event: Fed’s Interest Rate Decision
Investors are anticipating a significant monetary policy decision from the Federal Reserve next week. This decision, which could shape expectations for interest rates, impacts a macroeconomic trend that includes all risk-sensitive assets, including tokens.
Apart from Bitcoin, the second-largest cryptocurrency, Ether, saw a slight increase to $2,256. Smaller tokens or alternative cryptocurrencies were stronger; Cardano increased by 1%, while Polygon rose by 2%. Memecoins were also in the green, with Dogecoin and Shiba Inu rising by 1% each.
