The crypto market's rebound is remarkable given the stock market's sell-off. The prices of the top ten cryptocurrencies surged more than six percent in the last 24hrs.
Bitcoin price has increased by more than 6% in the last 24 hours and is currently trading at $20,130. However, since the stock market is crashing, Bitcoin is attempting to break the correlation.
Ethereum is also witnessing a strong rally for the first time since the Ethereum Merge. Ethereum has gained more than 6% in the last 24 hours and is on track to break the $1.4K mark. It is currently trading at $1377.
Some of the biggest winners in the crypto market in the last 24hrs include Solana (+6%), Polygon (+5%), and Terra Classic (+60%).
Is BTC Breaking Correlation With The Stock Market?
The crypto market's rebound is remarkable given the stock market's sell-off. The S and P 500 lost more than 1%, while the NASDAQ-100 dipped 0.5%. The cryptocurrency market is strongly correlated with the overall market.
However, prominent crypto influencer Kevin Svenson argues that Bitcoin is still dependent on the stock market. Lesser speculation with the S and P 500 is the reason for Bitcoin’s recovery. Svenson explains that just as cryptocurrency did not recover as quickly as the S and P 500 it is also not dumping as quickly.
The pause in the dollar's rally is also a factor in the cryptocurrencies' outstanding performance. Svenson believes that Bitcoin bulls would expect a rally in the stock market as well. Otherwise, cryptocurrency is bound to fall again.
Key Events To Watch
The cryptocurrency market will be hoping for a recovery in the stock market. Fed chair Jerome Powell’s speech can have a significant impact on any movement. He is scheduled to deliver his address today (September 27).
COINGABBAR VIEWS: Crypto is correlated with the traditional market with a beta of 2 (two times as volatile as the overall market). It behaves similarly to tech stocks and the tech-focused NASDAQ. Prior to 2020, there was no correlation between the two. To function as an inflation hedge, Bitcoin must continuously outperform the broader market.
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