(Bloomberg) — Bitcoin jumped back to around $40,000 as positive U.S. company earnings emboldens investors across asset classes following weeks of volatile price swings.
The largest cryptocurrency by market value rose as much as 3.2% to $40,366, just days after dropping to a six-week low of less than $38,000 . Ether hovered around $3,000 after increasing as much as 3.4%. Popular ‘altcoins’ Litecoin and XRP were up by 3.2% and 2%, respectively.
Despite being championed as an uncorrelated asset, Bitcoin has been trading much of the year in lockstep with more traditional assets such as technology stocks.
“Bitcoin is undergoing a period of price consolidation as it’s been staying in the same $37k-43k or so range throughout most of 2022,” said Jason Lou, the San Francisco-based chief operating officer of the crypto exchange Okcoin.
The S&P 500 posted its best intraday performance since March 9, while the Nasdaq 100’s advance nearly topped 4%. Meta Platforms Inc. surged in the biggest rally since 2013 after Facebook added more users than anticipated.
“Bitcoin and S&P 500 correlations have been elevated in relation to macro uncertainty, exceeding 0.75 over the past month,” Lou said. “This week’s tech earnings have therefore been playing a factor in the daily movement of Bitcoin’s price.”
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