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Crypto Market Defy Tech Stocks Slump as Bitcoin Surges Above $66K Amid Trump Rumors
Bitcoin and the broader cryptocurrency market are recovering despite a downtrend in stock markets, particularly tech stocks, indicating a correlation breakdown between two.
According to data from CryptoSlate, the leading cryptocurrency has surged more than 4% in the past few hours at press time, hitting $66,377.
Meanwhile, other major tokens such as Ethereal AND Solana are up 2.24% and 7.8% respectively, with ETH trading at $3,482 and SOL at $170 at press time.
Technological correlation
The cryptocurrency market rallied significantly in early trading in New York, rising to new monthly highs even as most stocks fell at the same time. It’s a notable break in the correlation between crypto and tech stocks in particular, which have mostly moved in tandem since about 2020.
The correlation has often been linked to the growing adoption by institutional investors, who view Bitcoin and other cryptocurrencies through a similar lens to technology stocks, resulting in synchronized trading patterns.
Studies have shown varying degrees of correlation between Bitcoin and tech stocks. For example, during certain periods, the correlation coefficient between Bitcoin and the NASDAQ-100 index (which is heavily tech-heavy) has increased, indicating a stronger relationship.
Despite the growing correlation, there are still periods when Bitcoin and tech stocks diverge due to unique events that impact the cryptocurrency market, such as regulatory news or significant developments in blockchain technology.
Market trend up
Bitcoin’s latest rally is being fueled by several factors, the most notable of which are rumors that former President Donald Trump may plan to announce intentions to Making BTC a Strategic Reserve Asset for the United States.
Trump has completely shifted to a pro-crypto stance in recent weeks, as the issue has become increasingly important among many voters. He has gathered broad support among technology and cryptocurrency industry leaders, who believe its policies will be more favorable for both sectors.
Strong support for a presidential candidate currently favored to win has given Bitcoin a boost after it fell to a multi-month low amid recent sell-offs in Germany.
Meanwhile, Solana has outperformed most of the top 10 tokens as the meme frenzy continues to grip the community despite a significant slowdown from the start of the year. The latest rally in SOL has also led to a notable surge in most major memecoins.
SOL’s momentum is driven primarily by increased adoption and the expectation that it will be the next token to receive ETF treatment. Some companies have already filed for a Solana spot ETF.
Bitcoin Market Data
At press time, 20:23 UTC, July 19, 2024, Bitcoin It is ranked first by market capitalization and the price is up 5.5% in the last 24 hours. Bitcoin has a market capitalization of 1.32 trillion dollars with a 24-hour trading volume $34.24 billion. Learn more about Bitcoin ›
Cryptocurrency Market Summary
At press time, as of 20:23 UTC on July 19, 2024, the total cryptocurrency market is valued at 2.44 trillion dollars with a volume of 24 hours $78.74 billionBitcoin’s dominance is currently at 54.28%. Learn more about the cryptocurrency market ›