Crypto updates from FunderPro
- Geopolitical tensions have investors flocking to BTC as the new “digital gold”.
- BTC’s yearly gains eclipse the benchmark indexes year-to-date progress.
Bitcoin pushes ahead on its rally, currently trading at $35.3k Wednesday morning as it regained its composure after an intraday low of $34.6k. Although the digital currency has shaken off 0.1% in the last 24 hours, the loss barely had an effect on its 2% pump for the week. Gaining 30% in the last six months to boast a market cap of $692 billion, the ever-popular coin dominates over 51% of the crypto market.
The pump for Bitcoin comes as investors search for safety amid the Israel-Hamas war. Typically, gold is the commodity revered as a “safe-haven” during times of uncertainty, but Bitcoin might be elbowing it out to take its place. While the price of gold has hit lows unseen in almost three weeks at $1960/oz, Bitcoin holds steady, claiming safe-haven territory as the new “digital gold”.
While the largest cryptocurrency by market cap has dominated the year so far with a 114% jump, the tech-heavy Nasdaq has delivered a respectable 30% return. The S&P 500 has only eked out a 14% rise. However, the broad-based index is still chugging along nicely compared to the rate-sensitive Dow Jones Industrial Average, which has only coughed up a 3% rise since January.
With that in mind, it is worth noting that the S&P 500 has joined its tech-heavy peer in a winning streak last seen in 2021, while the Dow Jones takes aim at its longest run of consecutive advancements since July.
Bitcoin was first bolstered by ETF news in October, which pushed the digital asset to close out the month with a 27% jump. Although the news of an approved spot Bitcoin ETF turned out to be fake, optimism surrounding the packaged investment being approved by the SEC remained, boosting the coin higher.
What the Fed Said
In Washington, Federal Reserve Jay Powell is set to speak twice this week regarding the current state of the US economy. Last week, the Fed pushed the brakes on their benchmark interest rate, maintaining their “higher for longer” stance. The pause was widely expected among analysts and may have contributed to Bitcoin’s recent uptick as investors search for higher-return assets in a low-interest environment.
In earnings, we will hear from entertainment giant Walt Disney after market close today, as well as automaker Honda and clothing company Ralph Lauren.
To keep it brief – there’s a nice buzz in markets at the minute, with Bitcoin pushing forward and stocks stealing the spotlight. That being said, as Bitcoin approaches the $35,900 support level, traders should stay alert for any signs of a potential plunge into a bear market. Jerome Powell’s upcoming speech will shine some light on the Federal Reserve’s impression of the overall health of the economy.