Bitcoin
and other cryptocurrencies edged higher Friday but remain at relatively depressed levels into the weekend. Next week will usher in a key catalyst for the stock market that could also move cryptos.
The price of Bitcoin has risen 1% over the past 24 hours to $40,500, having whipsawed either side of the psychologically important $40,000 level in recent days. The largest crypto has failed to cement gains made earlier this month after the landmark approval of spot Bitcoin exchange-traded funds (ETFs), which initially pushed prices to the highest level since early 2022 before a “sell the news” dynamic set in.
“Volatility in the cryptocurrency market remains subdued … Bitcoin remains around $40,000,” said Alex Kuptsikevich, an analyst at broker FxPro. “The drop in equity indices over the past 24 hours hasn’t been too much of a concern for cryptocurrency investors so far.”
Resilience in the face of swings in stocks may not last. As the ETF frenzy fades, there is evidence that Bitcoin is becoming more correlated to the stock market and the
Dow Jones Industrial Average
and
S&P 500
indexes. Investors are awaiting a key monetary policy decision from the Federal Reserve next week that could shape expectations for the pathway for interest rates, a macroeconomic trend that has a bearing on all risk-sensitive assets, including tokens.
Beyond Bitcoin,
Ether
—the second-largest crypto—was down less than 1% at $2,230. Smaller tokens or altcoins were stronger, with
Cardano
climbing 1% and
Polygon
up 2%. Memecoins were also in the green, with
Dogecoin
and
Shiba Inu
each up 1%.
Write to Jack Denton at [email protected]
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