Bitcoin Rises Above $29,000, Stocks Down – Trustnodes
Bitcoin has risen above $29,000, up about $700 for the day or close to 4%, while the Dollar Strength Index (DXY) also rose 0.5%.
Shares, in contrast, fall by 0.4%, while oil is also down 1%, and bond yields have risen 0.02%.
Many of these assets usually correlate inversely, like DXY and stocks/crypto, or correlate like DXY and oil, but not for today.
Bitcoin has also moved in step with the Nasdaq for much of the bear, but apparently no more since stocks have been down for much of the day while bitcoin is moving up.
The disconnect between bitcoin and stocks has been ongoing since March 12 when three US banks collapsed, drawing attention to crypto as a store of value outside the banking system.
Since then, bitcoin has moved in its own path and in parts for no specific reason.
For example, there is no particular news for today’s move as far as we are aware, and while that may change, it may also be that bitcoin dynamics have changed.
Having bottomed in November 2022, there may now simply be fewer sellers than buyers, putting upward pressure on the price.
Ethereum additionally has a big upgrade coming this Wednesday that will for the first time have a large and credible no-catch crypto offering yield.
The catch until now has been that eth had to be locked indefinitely. With the unlock upgrade, they can be withdrawn at any time.
This could have medium and long-term effects on crypto demand, but eth’s ratio to bitcoin is slightly down, so bitcoin is leading this move.
That’s likely because bitcoin is testing to change sentiment toward more excitement, toying with traders that it’s been sideways for nearly a month now as they test higher prices.
It hits $29,300 today making it just $100 up from last week’s brief peak but also making it a new high since June.
So the bull remains anxious, and yet has some crypto corners quietly excited as they wonder if the bull is really coming?
Such gains, small as they may have seemed during the last bull or for large parts of the bear, now speak not to the move itself, but to what the move suggests.
For example, some traders claim that there has been a breakout to the upside that is “disgustingly bullish”.
Well, we wouldn’t cosplay exuberantly at this point as a hyper bull anytime soon doesn’t seem very likely, but amidst the disbelief and denial, bitcoin is moving.
