The Global cryptocurrency market is trading under huge selling pressure over the past few months. However, Bitcoin, the world’s largest crypto has outperformed major traditional market assets.
Bitcoin prices down by 4.5% in last 30 days
According to a report by Arcane Research, Bitcoin has managed to surge by 0.8% in September against the USD. However, it has also outclassed both U.S indexes and gold.
Meanwhile, the dollar strength index (DXY) seems to be the only index among the major macro indices which have given better returns than Bitcoin. However, the dollar managed to surpass other currencies, while BTC outperformed the dollar this month.
Bitcoin prices have dropped by 4.5% over the past 30 days. Bitcoin is trading at an average price of $19,152, at press time.
The report suggests underperformance of the cumulative crypto market cap is caused by the poor performance of Ethereum in September. The total market capitalization has dropped under the crucial $1 trillion mark.
Ethereum emerged as the lowest performing asset mentioned in the report. However, this drop has been registered amid the most awaited ETH merge. Ethereum price has dropped by around 12% in the last 30 days. ETH is trading at an average price of $1,313, at the press time.
Will this correlation jump in future?
However, Bitcoin prices have outperformed major assets amid the climbing correlation with the traditional market. After the issuance of CPI data and the latest FOMC meeting, Nasdaq and S&P 500’s 30 day correlation has jumped to its highest level since July.
The report depicts that Bitcoin’s correlation with gold is on a surge over the past few months. The 30 day correlation between BTC and gold has climbed to a yearly high of 0.52.
During the FOMC meeting last week, Bitcoin’s intraday volatility reached new highs. While FED increased the interest rates by 75bps. However, BTC’s price dropped by around 5% in one minute just after the FOMC statement came out.