During the past week, cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) moved separately from S&P 500 and gold. Will this trend continue next week or will there be a change?
S&P 500 Takes the Lead
Last week, S&P 500 experienced a significant increase, outperforming Bitcoin and Ethereum. According to Santiment’s trend analysis, S&P 500 gained more than 6% over a four-day period.
As a result of the volatility, while stock prices visibly rose, the value of cryptocurrencies like BTC and ETH lagged behind. Interestingly, these cryptocurrencies showed signs of stable movement after a strong price increase.
The recent report of the Federal Open Market Committee (FOMC) may have played a significant role in the rise of S&P 500. The report stated that the Federal Reserve would maintain the current interest rate for the second consecutive month.
This decision led to speculations that the Fed may have completed its interest rate hikes. Based on the anticipation of such a market environment, there was a significant increase in stock prices last week.
BTC and ETH Catch Up with Stocks
Nevertheless, as of today, Bitcoin and Ethereum have once again surpassed S&P 500 in terms of price trends. Although it remains uncertain whether stock prices will rise when the market reopens due to its closure, cryptocurrency prices have continued to rise unaffected by this situation.
Bitcoin’s price remained relatively stable and was trading just below $35,000 at the time of writing. Despite the occasional drops, Bitcoin manages to hold its ground at the $35,000 level. This strong stance can be considered as one of the biggest indicators of the upward trend compared to S&P 500.
Lastly, Ethereum, the largest altcoin, showed an impressive performance when examining its daily chart. At the time of writing, Ethereum experienced a 0.7% decrease but settled just below the $1,800 level after a significant price increase over the weekend.
