Bitcoin back at $20,000 but falls short of the stock market rally and weakening dollar
Bitcoin and altcoins are benefiting from the rally of stock markets and other risk assets against the dollar and are dyed in green on Wednesday. The digital asset par excellence is up 2% in 24 hours and, more importantly, heading above $20,000, price levels where it was pushed back twice last week. Ethereum remains around $1,350, while other tokens are eagerly rising in daily range, such as Ripple (XRP) or Dogecoin (DOGE), which are edging 7% higher. The total capitalization advances to $965 billion.
Despite the rises - in the last week they are almost 8% for Bitcoin - digital currencies are lagging behind the rest of the markets, as they are eagerly taking advantage of the dollar's decline. Wall Street has embarked on a rebound so far in October after a nightmarish September for US indixes and in the currency market, the euro is up 5% while the pound is up 11%.
Crypto assets, on the other hand, after closing the ninth month of the year flat and down 1% for Bitcoin, are not bouncing back with as much energy, indicating to many experts that they have become moderately decoupled from the performance of the stock market and other risk assets.
"The slight disconnect between Bitcoin and other risk assets recently has been interesting," commented Craig Erlam, analyst at Oanda. "We've seen more resistance during dips and seemingly less enthusiasm during rallies. It will be interesting to see if this relationship holds and what it means going forward," he stated. Indeed, the rebound that markets have embarked on in October leaves Bitcoin on the sidelines for the time being.
"Could this mean that the smart money has been preparing for a trend reversal?" Marcus Sotiriou, analyst at GlobalBlock, pointed out. "The completion of Bitcoin's current trading range between $17,600 and $22,800 should give us the answer," he noted.