Remember the last time Bitcoin and Wall Street were practically dancing together? That was back in the 2022 correction. Well, it's happening again! Bitcoin's been getting cozy with Wall Street over the past few months, and just this week, their correlation hit a multi-year high. Isn’t that something?
Why now, you ask? Well, it's been a big week for the US stock market, with some of the biggest indexes hitting all-time highs. And it seems like the Fed’s recent interest rate cut gave both crypto and Wall Street a nice little boost. Oh, and let’s not forget the latest US macro data showing inflation slowing down to 2.2% from last August. Thanks to the Personal Consumption Expenditures Price Index—yeah, the one some folks trust more than the other inflation gauges.
The Dow Jones Industrial Average shot up from 41,921 to 42,616, hitting a new all-time high. It did pull back a bit by the end of the day, but still ended up in the green. The S&P 500 also had a similar run, climbing from 5,722 to over 5,760 before settling at 5,738. The Nasdaq Composite? Well, it couldn't quite break its July ATH and ended with a tiny dip.
Meanwhile, Bitcoin was having its own party, surging past $66,500 on Friday for the first time in two months. According to IntoTheBlock, this has pushed the Bitcoin-Wall Street correlation to a two-year high. Pretty wild, right?
And it’s not just stocks. Bitcoin's been getting chummy with gold too! Gold's been on a roll in 2024, hitting fresh peaks left and right, the latest being just shy of $2,690/oz.
So, the big question on everyone's mind—when will Bitcoin break its March all-time high of $73,800? With its high correlation to these soaring assets, it’s more than 10% away from its own ATH. But history’s on Bitcoin’s side. Q4 has traditionally been a blockbuster time for the big crypto, with an average return of about 90% over the past decade. Plus, October and November are typically super bullish months for Bitcoin. All this data points to one thrilling possibility—a new all-time high could be just around the corner!
