Much is made of Bitcoin’s underprestiation for gold – which on Tuesday hit another one in a wide range of items that crossed over $ 3,800 per day. Ounce for the first time. But gold is not the only asset party while Bitcoin stagnates below $ 115,000.
US shares have also chopped record height on what seems to be daily, including the Bellwether S&P 500 index, which is just below the 6,700 level.
Even with BTC fighting too late, the world’s largest crypto remains in a bull market, and this is not the first time this cycle that its performance diverges from the S&P 500.
The first divergence took place between March and July 2024. During this period, the S&P 500 climbed from about 4,000 to 4,600, while Bitcoin fell from just under $ 30,000 to $ 25,000.
The second divergence took place later that year when the S&P 500 ranged from 5,200 to 6,000 from April to October. With only a short summer break. However, Bitcoin did not follow, with his rally not started until November (along with the presidential elections).
As for this latest divergence, S&P 500 has been steadily moving higher since May, while Bitcoin has consolidated within $ 110,000 to $ 120,000. Bitcoin broke to new highs all the time in August, but these winnings were quickly turned, with BTC returning to the low end of its previous reach.
The story suggests that although Bitcoin and the S&P 500 often move in the same general direction, they differ periodically for extended periods. The data from at least this current cycle suggests that Bitcoin is likely to catch up on gold.
