Bitcoin has finally managed to break the $ 40,000 barrier. In the last seven days, it lost up to 5.85%. Last month, it fell 17.2%.
The current bear market raises a logical question: is it a correlation or deceleration before recovery? Now, the crypto market is slowing down, with Bitcoin (BTC) hardly able to break the $ 40,000 level, the S&P 500 index becoming negative and stocks falling again. However, all these trends have given the green light to gold prices.
What’s up with Bitcoin?
Bitcoin still remains the top crypto with the highest market capitalization. However, its price is not at the same record levels as weeks ago. At the time of this publication, Bitcoin is trading at $ 40,416.15. As its recent performance shows, Bitcoin was struggling to break the $ 40,000 barrier, but managed to do so with some obvious difficulties. In the last seven days, it lost up to 5.85%. Last month, it fell 17.2%.
On Sunday, May 23, the price of Bitcoin plummeted until it comes close to its crucial $ 33,000 support. This accident resulted from China’s regulatory crackdown on cryptocurrencies and traders in the country.
Some believe that Ethereum (ETH) appears to be taking control of Bitcoin. For example, Todd Morley, a former investment partner and co-founder of Guggenheim, believes that “Ethereum is more useful than Bitcoin”. According to Morley, more application developers are using the Ethereum network, which demonstrates their global recognition.
Meanwhile, NYDIG CEO Ross Stevens, to be continued optimistic about Bitcoin, saying that money is no longer an asset, but a liability.
Falling S&P 500
While Bitcoin is struggling to recover, the S&P 500 index is slightly sinking, with U.S. stocks fluctuating between small gains and small losses. Yesterday, it closed with a drop of 0.2%, at 4,188.13. Its main shares plummeted, with Apple Inc shares (NASDAQ: AAPL) closing 0.16%, Tesla Inc shares (NASDAQ: TSLA) plummeting 0.29%, Johnson & Johnson shares (NYSE: JNJ) losing 0.28%.
The Dow Jones Industrial Average fell 81.52 points, 0.2% as well, to 34312.46. Some of its main shares fell, while others recovered slightly. For example, Amgen’s health stocks (NASDAQ: AMGN) were traded 2% lower, while The Boeing Company (NYSE: BA) and The Walt Disney Company (NYSE: DIS) made solid gains of more than 1% each.
In addition, the Nasdaq Composite fell 4 points, or less than 0.1%, to close at 13657.17 yesterday.
Gold prices reach new peaks
Although cryptocurrencies and stocks are not going through the best of times, gold is enjoying a significant price recovery. Last week, the price of the precious metal reached its highest price level since January 8, reaching $ 1,889. Notably, this mark hit its highest peak in four months, after gold prices plunged to $ 1,681 in early March.
On Tuesday, gold prices reached $ 1,887 an ounce at 3 am. To date, spot gold is trading at $ 1,909.88, up about 0.62% in the past 24 hours.