Time: 2024-07-23
Bitcoin 's correlation to the S&P 500 may have come to an end recently . The top US indices were down while Bitcoin was rallying , breaking its way higher . This is a significant shift as Bitcoin was previously strongly correlated to the S&P 500 . Some even speculated that ETFs could further tighten this correlation . However , the correlation broke as Bitcoin surged while the S&P 500 faced weakness.
On Wednesday , Bloomberg reported that the current US administration is considering a foreign direct product rule to control chip equipment exports to China . Additionally , Donald Trump 's comments about Taiwan paying the US for protection had an impact on the financial markets.
CrowdStrike , a leading cybersecurity firm , issued an update that caused a global outage for its clients , affecting various sectors such as banks , airlines , and hospitals . Despite these challenges , Bitcoin saw strong inflows from ETFs , with the Bitcoin supply backing these investments . Trump 's remarks about possibly using Bitcoin as the US strategic reserves also contributed to Bitcoin 's rally , with the US government holding approximately 213,000 BTC.
With Bitcoin 's surge , the question arises whether Ethereum will enjoy the same safe - haven status . Once approved spot ETH ETFs are listed , the market will closely monitor the inflows and compare them to Bitcoin 's . While high inflows may impact Ethereum 's price , it remains uncertain if it can achieve the same status as Bitcoin.
In the meantime , meme coins have been experiencing significant gains . As Bitcoin and Ethereum rallied , meme coins like rallied around 20 % , while Turbo gained around 25 % . Even Aptos and L1s rallied despite their lack of direct relation to Bitcoin . This indicates that a Bitcoin rally can boost the entire crypto market.
It will be crucial to observe the coming weeks to see if Bitcoin 's de - pegging from the S&P 500 is sustainable . If Bitcoin continues to rally while US markets decline , investors may view it as a new safe - haven asset . This could lead to moderate gains for Bitcoin in the future.