Bitcoin price saw a jump to $49,700 early Tuesday, and the coin is up by 3.35% in the last 24-hours. The price momentum is followed by weeks of consolidation around $42,000. With this latest increase, BTC price is again approaching a $1 trillion market cap decoupling from the S&P 500 stocks for the second time this year.
Bitcoin Threatens US Stock Market!
S&P 500 stocks in the US are down by 1.5% while Bitcoin price is spiked by 3.35% over the last 24 hours. This disengagement could further give a major boost to the crypto market. According to market analysts, crypto space offers a secure store of value than stocks. And it would be no more surprising to see if all the money from the traditional market flows to Bitcoin in the near future.
History Says This Discoupling Could Soon Become Default!!
Initial mass adoption of the asset in the first quarter. And increased institutional investments haven’t just driven the BTC price rise, they seem to have boosted the cryptocurrency decouple from the US stocks like the S&P 500 index and gold. Bitcoin disengaged from Gold a year ago was a big catalyst for the price spike.
Historical analysis reveals that Bitcoin is moving unparalleled to the moon as compared to any other stocks or technology. Well, the total returns of Bitcoin over the previous 10 years is increased by +994,608%. And S&P 500 stocks gained only +344% in the same time span. Hence, decoupling could soon become the default as many institutional investors are coming forward to invest in the crypto space.
What Awaits Ahead!!
Collectively, it might be a matter of Bitcoin’s one-day momentum against the traditional equities. But it is happening even with a low crypto market cap. Moreover, Traditional equities are shaky and Bitcoin is booming into its early mass adoption stage. And US equities like S&P 500 are hesitant to talk to the US, but the flagship asset being a global currency that is independent of any backing government. This will be an additional benefit to the whole crypto space.
The Bitcoin price is doing good starting from this quarter 4. Near-term, it is necessary for the asset to find support between $49.3K to $50k. Break out from here could take the asset price up to $60k. On the contrary, the coin has an immediate strong support level of around $46K.