Cryptocurrency market resists fall in tech stocks: Bitcoin reaches $66,000 amid rumors of Trump support
Date: 2024-07-23 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
The cryptocurrency market saw impressive gains as trading began on the New York Stock Exchange, hitting new monthly highs despite continued declines in technology stocks. Bitcoin, the leading cryptocurrency, increased its value by more than 4%, reaching $66,377 at the time of publication.
Other key tokens also showed notable gains: Ethereum rose 2.24% to $3,482, while Solana rose 7.8% to trade at $170. This rise in cryptocurrencies is contrary to the general trend in the stock market, indicating a weakening correlation between cryptocurrencies and technology stocks.
The recent deviation in correlation between the cryptocurrency market and technology stocks is significant. Until recently, Bitcoin and tech stocks were moving in unison, due to increased interest from institutional investors who viewed cryptocurrencies and tech stocks as fungible assets.
Studies show that the correlation coefficient between Bitcoin and the NASDAQ-100 index (which includes the largest technology companies) has varied, indicating varying degrees of connection. There are periods when the correlation weakens, particularly due to specific events in the cryptocurrency space, such as regulatory news or significant technological advances.
Reasons for Bitcoin's recent rise
Bitcoin's recent rise can be attributed to several factors, the most notable of which are rumors of former President Donald Trump's possible support for Bitcoin. Trump, who has recently become an active supporter of cryptocurrencies, may announce his intention to make Bitcoin a strategic reserve asset for the United States. These rumors maintain interest in Bitcoin, especially given its recent decline to multi-month lows.
Strong support from Trump, who is expected to play a key role in the upcoming election, has given new impetus to Bitcoin and regained its position amid the recent market sell-off.
Solana Market and Meme Coins
Solana also showed impressive growth, outperforming most of the top ten tokens. This growth is due in part to continued interest from the meme coin community and expectations that Solana will be the next token to achieve ETF status. Some companies have already filed to create a spot ETF for Solana, which is likely to have an additional impact on its value growth.
Thus, the cryptocurrency market is demonstrating its ability to withstand the decline of technology stocks, reaching new heights in the face of instability in the stock markets. Support from political figures and increased interest in specific tokens such as Solana highlight the importance of cryptocurrencies as an alternative investment vehicle in the current economic climate.
