Bitcoin falls below $42,000 despite gains in major stock indices
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BTC
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The world’s largest cryptocurrency by market capitalization is set to close the week lower and achieve its eighth straight week of positive returns. Bitcoin fell more than 2% over the past 24 hours to $41,991 at 12:10 PM ET, according to data from The Block.
The decline resulted in the liquidation of nearly $16 million worth of long positions, while only about $8 million of short positions were liquidated, according to Coinglass data.
According to The Block’s price page, Bitcoin has fallen below the $42,000 level.
Correlation between Bitcoin and stocks weakens
These muted price movements stand in contrast to the exuberance of traditional markets and call into question the tendency of digital assets to move in lockstep with major stock indices.
Wall Street continued to rally after the Federal Reserve decided to pause interest rates for the fourth time this year at its Federal Open Market Committee meeting on Wednesday. Rising trends in major stock indexes suggest investors are calculating the likelihood of a rate cut in 2024, with the CME FedWatch tool currently rating the odds of a March rate cut at around 65%.
The Nasdaq rose 0.4%, the S&P 500 was flat and the Dow Jones Industrial Average rose 0.1%.
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© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
