Bitcoin rallied back to around $40,000 as positive earnings from the US company encouraged investors across asset classes after weeks of price volatility.
Bitcoin price rebounded to around $40,000 as solid US corporate earnings encouraged investors across asset classes after weeks of price volatility.
The largest cryptocurrency by market value jumped as much as 3.2% to $40,366, just days after falling to a six-week low below $38,000. Ether hovers around $3,000 after gaining 3.4%. Popular ‘altcoins’ Litecoin and XRP are up 3.2% and 2% respectively.
Despite being championed as an unrelated asset, Bitcoin has traded most of the year against more traditional assets like tech stocks.
Jason Lou, CEO of San Francisco-based crypto exchange Okcoin, said: “Bitcoin is going through a period of price consolidation as it has been in the same range of $37k-43k throughout. most of 2022.
The S&P 500 posted its best intraday performance since March 9, while the Nasdaq 100’s gain almost topped 4%. Meta Platforms Inc. surged in its biggest rally since 2013 after Facebook added more users than anticipated.
“The correlation between Bitcoin and the S&P 500 has been elevated in relation to macro uncertainty, exceeding 0.75 over the past month,” Lou said. “As a result, this week’s tech earnings has played an important role in the daily movement of Bitcoin’s price.”
