The Crypto market capitalization is up by 4.81% in the last 24 hours after a bear streak. The market value is now on course to breaking above $1 trillion marking the beginning of a bull run that could prevail this week.
In the meantime, the stock market is in the red. This is a deviation from a correlation trend where the two markets have been moving in the same direction. NASDAQ-100 is down by 0.5%, and S&P 500 is down by over 1% in the period under review.
Recent research by Coinbase affirms that the correlation between the two markets is by a factor of beta 2. The trend started in 2020 when Crypto became mainstream, and many investors regard Digital Assets as high-risk tech stocks.
A Correlation Still Exists
Despite the trend deviation, Kevin Svenson- a Crypto influencer-believes that a strong correlation exists between the two markets. He believes that the high optimism in Digital Assets is driving the growth. A Harris poll shows that 71% of crypto investors are confident that their investments will yield a positive return.
However, Svenson is cautious that the prevailing bull run will lose momentum if the stock markets do not turn around. The influencer believes that the two trends will converge in the long term.
In the meantime, another variable could be triggering the Crypto rally. Experts believe that the US Dollar is not appreciating against other currencies such as the Euro, JPY, and the British Pound. Speculators are now trooping back to the Digital Assets where a short-run rally is in the offing.
The Crypto Market Overview
Bitcoin (BTC) is trading above $20,000. In the last 24 hours, it has appreciated by 7%. The rise is getting steeper after surging by 7.33% yesterday. The market capitalization is now at $384 million, and the market dominance is 39%. On Monday, 2.4 million tokens were traded as investors’ activities increased sharply.
Ethereum (ETH), on the other hand, is trading at $1,385. Since yesterday, the leading Altcoin has surged by 7.16%, and the weekly changes are now positive at 2% growth. The market dominance has slumped to 17% from a peak of 20% when the month commenced.
A bull trend correction is evident across the market, with the most digital market in the green zone. XRP, ADA, SOL, and DOGE have a weekly growth of 26%, 2%, 8%, and 6%, respectively.
Investing in Crypto Has Gone Mainstream
Digital Assets are crucial for institutions and investors looking to diversify their portfolios. Hence, with the inelastic supply of Digital Assets, the long-term returns are likely to be positive as the search for financial instruments to store wealth gathers momentum. Crypto assets are futuristic, and they usher in a new way of financial freedom that the world craves.