Bitcoin breaks $70k, nears all-time high
Bitcoin has surged past the $70k mark once again, closely approaching its all-time high of $74k hit in March. This rebound highlights the cryptocurrency’s volatility and resilience, capturing the attention of traders eyeing potential for significant gains. Such movements are critical for forex traders who now increasingly consider Bitcoin’s influence on market dynamics and other asset classes.
BTC $100k within reach by end of 2024
With its current volatility rate at 67%, Bitcoin could see a significant move within the next year, potentially reaching or even surpassing $100k. Using a one-standard-deviation move, BTC could fluctuate up to +/- $48,240 in the next year. This projection could mean new all-time highs above $110k or a reversion all the way down towards 20k. Such a wide range of expectations highlights the unpredictable volatility of crypto we’ve observed since its inception.
Are S&P 500 bulls leading Bitcoin higher?
The correlation between the S&P 500, particularly technology stocks, and Bitcoin has historically been positive, suggesting that a bullish stock market could pave the way for Bitcoin’s value to rise. This relationship has been declining in recent months, however, as the current rolling 12-month correlation between the S&P and Bitcoin is under +0.25.
Is Bitcoin replacing US dollar?
As Bitcoin and the US dollar both hover near recent highs, the traditional negative correlation between them is showing signs of weakening – now close to 0 or completely uncorrelated. This shift prompts speculation about Bitcoin’s role in the global financial system and whether it could challenge or complement traditional fiat currencies like the USD in the forex market.
Can Bitcoin become the next gold?
With Bitcoin and gold both achieving new all-time highs and showing a positive correlation, speculation grows around Bitcoin’s potential as a flight-to-quality asset, similar to gold. For forex traders, this emergent relationship suggests diversifying strategies may include considering Bitcoin alongside traditional safe-haven assets.
