FOMC

Bitcoin

Quantum

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  Neither the author, Ruholamin Haqshanas, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions. 
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<p class="has-drop-cap">Bitcoin has breached the $27,000 level for the first time this month. The rally came as Bitcoin’s correlation with gold and the stock market dropped. Currently, the&nbsp;<a href="https://www.theblock.co/data/crypto-markets/prices/btc-pearson-correlation-30d" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">correlation of Bitcoin with gold</a>, Nasdaq Composite, and S&amp;P 500 stands at -0.02, -0.06, and 0.18, respectively.</p> 
<h3 id="bitcoin-price-breaks-above-27-000">Bitcoin Price Breaks Above $27,000</h3> 
<p>On Monday, cryptocurrencies extended their rallies, with the leading cryptocurrency breaking over the $27,000 mark. Bitcoin increased by 3.7% to $27,418 on Monday before trimming some gains to fall below the psychological $27,000 level.&nbsp;</p> 
<p>At the time of writing, the flagship cryptocurrency is trading at $27,167.90, largely flat over the past day. The coin is up by more than 4% over the past seven days and around 5% over the past month. However, it is still down by more than 60% compared to its all-time high of around $69,000 registered in November 2021.&nbsp;</p> 
<p>The price gain comes ahead of the Federal Open Market Committee (FOMC) meeting, which will be held on September 19-20. During the meeting, the Federal Reserve&nbsp;<a href="https://tokenist.com/97-chance-of-no-interest-rate-hike-despite-disappointing-cpi-print/" rel="noopener noreferrer nofollow" class="deco-link">expected to keep</a>&nbsp;borrowing rates steady. Higher rates tend to reduce the allure of higher-risk assets such as cryptocurrencies.</p> 
<p>“After a prolonged struggle at the psychological support of $25,000, Bitcoin held steady. Range traders will now be looking to take profits just above $30,000,” Mati Greenspan, chief executive officer of Quantum Economics,&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-09-18/bitcoin-climbs-above-27-000-for-the-first-time-since-august" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">told Bloomberg</a>.&nbsp;</p> 
<p>However, some analysts have claimed that the rally might not last as there is no clear catalyst behind the price rise. Dessislava Ianeva, senior research analyst at Kaiko, said:</p> 
<blockquote class="wp-block-quote"> 
 <p>“I don’t see a clear catalyst for the move up. In the current low liquidity environment, relatively low buying/selling pressure could amplify spot price movements and spur liquidations on derivatives markets.”</p> 
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<h3 id="bitcoin-correlation-to-gold-equities-drop">Bitcoin Correlation to Gold, Equities Drop</h3> 
<p>The recent Bitcoin rally came as the coin’s correlation with gold and the stock market has dropped. According to data by The Block, the 30-day correlation between the top cryptocurrency and gold, Nasdaq Composite, and S&amp;P 500 currently stands at -0.02, -0.06, and 0.18, respectively.</p> 
<p>The indicator determines the correlation in the range between 1 and -1. If the result is very close to 1, they are highly correlated, while the opposite happens if it approaches -1.</p> 
<p>The low correlation suggests that traditional assets are not influencing the crypto market. This&nbsp;<a href="https://tokenist.com/bitcoins-correlation-to-gold-increases-as-crypto-rally-continues/" rel="noopener noreferrer nofollow" class="deco-link">marks a contrast from earlier this year</a>&nbsp;when Bitcoin’s correlation to gold increased.</p> 
<p>It is worth noting that the correlation between Bitcoin and equities appears to be cyclical. Data by The Block shows that Bitcoin’s correlation with gold dropped to as low as -0.84 in early July after reaching 0.73 in late 2023.&nbsp;</p> 
<h3 id="nomura-s-laser-digital-launches-bitcoin-fund">Nomura’s Laser Digital launches Bitcoin Fund</h3> 
<p>On a positive note to Bitcoin investors, Laser Digital Asset Management, a subsidiary of Nomura, has&nbsp;<a href="https://finance.yahoo.com/news/laser-digital-launches-bitcoin-adoption-053425554.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">announced the launch</a>&nbsp;of its Bitcoin Adoption Fund. The fund will allow institutional investors to gain exposure to Bitcoin with the highest risk management and compliance levels.</p> 
<p>“Technology is a key driver of global economic growth and is transforming a large part of the economy from analogue to digital,” said Sebastien Guglietta, head of Laser Digital Asset Management. “Bitcoin is one of the enablers of this long-lasting transformational change.”</p> 
<p>Laser will rely on Komainu, a regulated custody solution for institutional digital asset investors founded in 2018 by Nomura, Ledger, and Coinshares, to ensure the security of the fund’s assets. Nomura Holdings is a $500 billion financial giant that provides brokerage to leading intuitional investors.&nbsp;</p> 
<p>Nevertheless, Bitcoin is trading at $27,167.90, essentially flat over the past day. The broader crypto market is also largely flat over the past 24 hours, with most altcoins registering less than 1% gains.&nbsp;</p> 
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<p><strong><em>Do you think Bitcoin would register more gains ahead of the FOMC meeting? Let us know in the comments below.&nbsp;</em></strong></p> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/bitcoin-hovers-above-27000-as-correlation-with-gold-stocks-drops/">Bitcoin Hovers Above $27,000 as Correlation with Gold, Stocks Drops</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Bitcoin Hovers Above $27,000 as Correlation with Gold, Stocks Drops

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