The cryptocurrency is largely tracking stocks.
Bitcoin (BTC) continued its ascension on Monday, rising 3% on average volume. The largest cryptocurrency by market capitalization surpassed $24,000 earlier in the day and remained above that threshold in the afternoon.
BTC’s hourly charts (below) show that the bulk of the push higher occurred between 10 a.m. and 12 p.m. UTC time before the price steadied.
Bitcoin’s gains have for the most part dovetailed with traditional markets. On Monday, the Dow Jones Industrial Average rose 0.09%. The tech-heavy Nasdaq Composite Index, meanwhile, fell 0.10% and the S&P 500 slipped 0.12%. Correlations between BTC and the three indexes remain above 0.60, indicating a strong relationship between BTC price movements and stocks.
Correlations range between -1 and 1, with higher figures signaling a stronger relationship. Investors often consider those correlations when the price movement in one group of assets outpaces the price movement in another.
Because BTC’s spike occurred outside of U.S. trading hours, traders may be watching whether the cryptocurrency’s price continues to align with equities.
Ether (ETH) was recently up 3.5%. Most of the increase also came during overnight hours in the U.S.
Altcoins rose, as well, with avalanche (AVAX) up 2% and chainlink (LINK), up 9%.
●Bitcoin (BTC): $23,929 +3.1%
●Ether (ETH): $1,784 +4.1%
●S&P 500 daily close: 4,140.06 −0.1%
●Gold: $1,806 per troy ounce +1.9%
●Ten-year Treasury yield daily close: 2.77% −0.07
Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices.