Bitcoin price attempted to break through the $27,000 barrier, but the rally was halted due to a renewed decline in the US stock market. The S&P 500 and Nasdaq both experienced losses of about 0.6%, making both indexes lower by approximately 10% since the beginning of August. Currently, Bitcoin is trading just below $26,200, but earlier in the day, it managed to rise above $26,800.
Interest Rates and Bitcoin Price
While interest rates continue to trend upwards, which should theoretically put pressure on the price of Bitcoin, some argue that the typical relationship between interest rates and Bitcoin is breaking down. Others believe there is a bullish argument to be made about Bitcoin based on its technical aspects. Mark Yusko, Chief Investment Officer of Morgan Creek Capital Management, recently said that all eyes should be on the next Bitcoin halving event, which occurs every four years and will change the “seasons” of Bitcoin.
Decline in Equity Markets
The decline in equity markets today came as the 10-year Treasury yield surged another nine basis points to a fresh 16-year high of 4.63%. The price of oil was also ahead by more than 3.5% to a new 2023 high of $93.53 per barrel. A Wall Street Journal survey showed 41% of US chief financial officers trimming capital spending plans and 42% cutting back on operational costs in response to higher rates.
SEC Extends Deadlines on ETF Filings
The SEC has extended deadlines on decisions regarding spot ether ETF filings from ARK Invest and VanEck. The looming government shutdown likely forced the SEC’s hand in announcing these delays earlier than necessary, as the agency will be working with a skeleton staff in the event of a shutdown. Alongside that news, the SEC also said it has begun consideration of a spot Bitcoin ETF application from Franklin Templeton.
Bitcoin Price and Market Trends
Despite the halted rally, the Bitcoin price still shows potential for growth. As interest rates continue to rise, the relationship between interest rates and Bitcoin may be evolving, with some experts arguing that the traditional correlation is breaking down. This could provide a bullish argument for Bitcoin based on its technical aspects.
The upcoming Bitcoin halving event, which occurs every four years, is another factor that could influence the market. According to Mark Yusko, this event will change the “seasons” of Bitcoin and could potentially drive the price higher.
Effects of the US Stock Market on Bitcoin
The recent decline in the US stock market has had an impact on the Bitcoin price, with the digital currency struggling to surpass $27,000. The S&P 500 and Nasdaq have both experienced losses, which may have contributed to Bitcoin’s halted rally. However, as the market continues to evolve, it is possible that Bitcoin could overcome these obstacles and reach new heights.
Conclusion
In summary, the Bitcoin price attempted to surpass $27,000 but was halted by a renewed decline in the US stock market. While interest rates continue to rise, the relationship between interest rates and Bitcoin may be changing, and the upcoming Bitcoin halving event could provide a bullish argument for the digital currency. As the market continues to evolve, it remains to be seen how these factors will ultimately affect the price of Bitcoin.
