According to CNBC and Coin Metrics, Bitcoin is up 12 percent this week, while Ether is up 14 percent. By comparison, the S&P 500 and Dow Jones collective index fell 0.9 percent and 2.9 percent. On the other hand, the Nasdaq Technology Stock Exchange finished somewhat higher, up 5 percent so far this year.
It is worth noting that the trading week in the US market has been somewhat shortened due to Martin Luther King Day.
Bitcoin price has moved largely in tandem with stocks during 2022. On the eve of last year, the correlation was not strong, as several scandals hit the cryptocurrency market. This has led to a weakening of investor confidence.
Good news for cryptocurrency investors
Silvia Jablonski, chief investment officer at Defiance ETFs, told CNBC that bitcoin has benefited from the rally on the Nasdaq. She points out that it is uncertain how the cryptocurrency will stand up to the new monetary policy tightening by the Federal Reserve, and the economy is about to contract.
Jablonski believes that bitcoin once again appears to be in line with tech stocks is good news for cryptocurrency investors.
“With inflation set to ease, and the Fed appearing to be nearing the end of economic tightening, risk assets may catch a breather and possibly attract investors again,” she says.
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