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Bitcoin has undergone a strong rally over the past day, gaining $300 as it pushes to $11,750.
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It topped out at $11,820 today as the dollar underwent a slight rally higher.
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TradingView.com data indicates that Bitcoin is outpacing a swath of other assets over the past day’s trading session.
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It is outperforming the S&P 500, gold, along with altcoins.
Bitcoin Outpaces S&P 500, Altcoins In Unique Trading Session
Bitcoin has undergone a strong rally over the past day. The leading cryptocurrency currently trades for $11,750, around $300 higher than it was trading yesterday. $11,750 is also just shy of $600 above the lows of last week, triggered on news of OKEx freezing withdrawals.
What’s interesting about this rally is that BTC has managed to outpace a swath of other assets.
TradingView.com data indicates that Bitcoin is outpacing a swath of other assets over the past day’s trading session. It is outperforming the S&P 500, gold, along with altcoins. The latter is especially puzzling as altcoins have acted as a high beta play on Bitcoin over recent weeks.
Analysts noted that this price action is peculiar, as Bitcoin has traced the S&P 500 to a T over the past few months, especially since the liquidity event in March:
“for the first time in a looong time equities fell while btc moved higher. was very surprised to see this today, but there is nothing i would like more than to see btc break its correlation with equities.”
It is unclear if this uncorrelated price action will continue, as it’s believed that Bitcoin is moving higher on talks of a continued push to central bank digital currencies.
Will The Move Upward Continue?
Even if the uncorrelated nature of Bitcoin doesn’t persist for long, analysts think that all markets will move higher with time as stimulus talks continue.
Raoul Pal, CEO of Real Vision, and a former Goldman Sachs hedge fund chief, recently commented on the potential for stimulus amid the push for CBDCs:
“Fiat globally will be worth less versus hard assets. And that means that gold and in particular #Bitcoin will become THE way to circumvent the system of ever lower value. It also create incentive systems for other nations to opt into a hard currency system to attract capital.”
Others have echoed this sentiment, saying that any increase in the level of fiat in the system will drive BTC higher.