The price of Bitcoin has experienced mixed performance over the past week, falling below $40,000 but subsequently recovering and briefly reaching $42,000. There is speculation that Bitcoin may be regaining correlation with the S&P 500, a prominent stock market index.
Bitcoin price hovers around $42,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Analysts suggest that Bitcoin and other large-cap assets may “regress to the mean and play catch-up with the equities markets,” indicating a potential alignment between cryptocurrency and traditional equities. The relationship between the stock market and the cryptocurrency has been closely observed by investors as a means of diversification.
Currently, Bitcoin’s price is around $41,824, reflecting a nearly 5% increase in the past 24 hours. Despite being below its 2024 high, the recent upswing has helped Bitcoin recover most of its losses from the previous week. Bitcoin remains the largest asset in the cryptocurrency sector, with a market capitalization exceeding $820 billion.
Source: BITCOINST
