Despite the S&P 500 reaching an all-time high, Bitcoin’s price has not mirrored the optimistic trend in equities. The largest cryptocurrency by market cap has continued to trade sideways, sliding below the $61,000 mark during early morning trading on Wednesday.
Bitcoin Slides as Equity Indices Soar
- Bitcoin’s price decreased by around 2% in the past 24 hours, currently sitting at $60,500 as of 5:15 a.m. ET.
- The S&P 500 reached a new all-time high, increasing by 0.6% to 5,509.01.
- The Dow Jones Industrial Average rose by 0.4% to 39,331.85, and the Nasdaq Composite added 0.8% to 18,028.76, exceeding its own record set a day earlier.
- Major European and UK equity indices were also in the green in early trading on Wednesday.
Fed Chair’s Dovish Remarks Spur Rate Cut Expectations
- Federal Reserve Chair Jerome Powell stated that the central bank has made “quite a bit of progress” on inflation but needs more confidence before cutting rates.
- Powell’s dovish remarks at the ECB Forum on Central Banking in Sintra have been noted by interest rate traders.
- The market has now increased the chance of a rate cut by the Fed at September’s FOMC meeting from 59% to 67%, according to the CME Group FedWatch Tool.
“The labor market is still strong, and the disinflation trend shows signs of resuming. We have made quite a bit of progress on inflation, and we are getting back on disinflationary path,” – Jerome Powell, Federal Reserve Chair
Cryptocurrency Market Updates
- Despite the bullish sentiment in the broader equity markets, Bitcoin has failed to capitalize on the optimism, continuing to trade sideways.
- The cryptocurrency is up 35% year-to-date after seeing its record high prices of over $73,000 in mid-March.
- The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry.
