Source: Adobe<\/p>\n
Bitcoin (BTC)<\/a> has displayed resilience by surging to a more than 19-month high, even as global markets experienced a downturn.\u00a0<\/span><\/p>\n The cryptocurrency climbed 5.8% to reach $42,000 on Monday and maintained its position just below that level in morning Asian trading on Tuesday.\u00a0<\/span><\/p>\n In contrast, global shares and bonds have been struggling with losses since the beginning of the week.\u00a0<\/span><\/p>\n This divergence highlights the current low correlation between cryptocurrencies and other traditional macro assets, Sean Farrell, the head of digital-asset strategy at Fundstrat Global Advisors LLC,\u00a0<\/span>told Bloomberg<\/span><\/a>.\u00a0<\/span><\/p>\n Throughout 2023, Bitcoin\u2019s correlations with stocks and gold have diminished as specific factors within the crypto market propelled a remarkable 152% surge in the value of the largest digital asset.\u00a0<\/span><\/p>\n One of the key drivers behind the gains is the anticipation that the United States will approve its first spot Bitcoin exchange-traded funds (ETFs), potentially expanding the demand for the token.<\/span><\/p>\n The 90-day correlation coefficient between Bitcoin and MSCI Inc.\u2019s global shares index has declined from 0.60 to 0.18 since the start of the year.<\/span><\/p>\n A similar analysis of the token and spot gold reveals that the correlation figure has dropped close to zero from 0.36.\u00a0<\/span><\/p>\n A correlation coefficient of 1 indicates assets moving in tandem, while minus-1 signifies opposite movements.<\/span><\/p>\n <\/span> Executives in the industry are becoming increasingly optimistic that the worst of the US crackdown on the sector is behind them.\u00a0<\/span><\/p>\n Recent events, such as the imprisonment of Sam Bankman-Fried for fraud at FTX and the hefty fines imposed on top crypto exchange Binance and its founder Changpeng Zhao for US anti-money-laundering and sanctions violations, have instilled the belief that US authorities and regulators have already expressed their stance.\u00a0<\/span><\/p>\n This has raised hopes for more constructive dialogues between regulators and industry participants.<\/span><\/p>\n It is worth noting that technical indicators, including the 14-day relative strength index (RSI), suggest that Bitcoin\u2019s rally may have become overextended, with the index at 75 above the 70 overbought level.<\/span><\/p>\n However, speculative interest persists due to predictions of the Securities & Exchange Commission granting approval for US spot Bitcoin ETFs by January.\u00a0<\/span><\/p>\n Additionally, investors have taken encouragement from bets on future interest-rate cuts by the Federal Reserve.<\/span><\/p>\n Online brokerage Robinhood Markets reported in a Monday filing that its notional crypto trading volumes in November were approximately 75% higher than October levels.\u00a0<\/span><\/p>\n Likewise, shares of public crypto companies listed in the US\u00a0<\/span>have experienced a surge<\/span><\/a>\u00a0amid soaring BTC price.<\/span><\/p>\n On Monday, popular crypto exchange\u00a0<\/span>Coinbase<\/span><\/a>\u00a0saw a 7.3% surge before the market opened.\u00a0<\/span><\/p>\n Despite reporting a decline in third-quarter trading volumes, the stock enjoyed a remarkable increase of nearly 62% in November.<\/span><\/p>\n Microstrategy, a prominent bitcoin investor that acquired bitcoins worth $593 million the previous month, also experienced an 8.2% gain.<\/span><\/p>\n The post Bitcoin\u2019s Recent Rally Underscores the \u201cLow Correlation\u201d of Crypto with Traditional Assets: Expert<\/a> appeared first on Cryptonews<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Source: Adobe Bitcoin (BTC) has displayed resilience by surging to a more than 19-month…<\/p>\n","protected":false},"author":0,"featured_media":16803,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-16802","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/posts\/16802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/comments?post=16802"}],"version-history":[{"count":0,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/posts\/16802\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/media\/16803"}],"wp:attachment":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/media?parent=16802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/categories?post=16802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/tags?post=16802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Regulation Impacts Crypto Market in the US<\/span><\/h2>\n
\nRegulation is another significant factor that has influenced the crypto market.\u00a0<\/span><\/p>\n