Bitcoin’s 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. The leading cryptocurrency continued its resurgence in recent weeks, climbing to $66,000 on Friday, September 27.
Recent data suggests 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 can this be the investor behavior?
How did Bitcoin and S&P 500 perform in September?
In a recent post on the X platform, crypto intelligence firm IntoTheBlock said revealed the correlation between the Bitcoin price and the S&P 500, one of the most popular stock indexes, has reached its highest point in more than two years. To be clear, the S&P 500 index tracks the performance of 500 of the largest publicly traded companies in the United States.
Bitcoin price posted a surprisingly positive performance in September, a month known to be historically bearish for the flagship cryptocurrency. According to data from CoinGecko, the value of BTC has increased by more than 11% in the past month.
Source: IntoTheBlock/X
Meanwhile, the S&P 500 index has made a rapid and strong recovery, setting a new all-time high after an initial slump at the start of the month. Data from TradingView shows that the index rose almost 4% in September.
The relationship between the stock market and the cryptocurrency market has always been intriguing as investors look to take advantage of the opportunities offered by both markets. Nevertheless, a strong correlation between these two asset classes is believed to limit the diversification opportunities they offer investors.
At the time of writing, the Bitcoin price is around $66,024, reflecting an increase of just 1.1% in the past 24 hours. Meanwhile, the S&P 500 Index continues to hover around 5.8K, up 0.4% over the past day.
Global liquidity increases by $1.426 trillion in one week
Popular crypto expert Ali Martinez went to the X platform part that there has been a remarkable increase in the volume of capital in global financial markets. Martinez data shows that global liquidity increased by $1.426 trillion in the past week.
Global liquidity increased by $1.426 trillion this week to $131.6 trillion. #Bitcoin and other risk assets are gaining popularity, although this liquidity boost could continue into October. pic.twitter.com/PtFDjkR7wU
— Ali (@ali_charts) September 27, 2024
Bitcoin and other risk assets have been the main beneficiaries of rising global liquidity as their value has risen due to increased capital inflows. Martinez also noted that this liquidity boost could continue into 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