Bitcoin Briefly Climbs To $61K Then Seesaws, Mirroring Stock Market Movements

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Key Points

Bitcoin briefly rose above $61,000 on Friday after a rally in the stock market on Thursday. The cryptocurrency pared some of those gains as stocks surged on Friday.

Bitcoin has become more correlated with the S&P 500 than gold amid this week’s financial turmoil.

US spot Bitcoin ETFs saw $77.3 million in outflows this week, while spot Ethereum ETFs saw $120.6 million in inflows.

Bitcoin (BTCUSD) briefly rose above $61,000 amid the recent rally in stocks, but has since lost some of its gains and traded on either side of the $60,000 mark, depending on the movement of stocks.

This development comes after the cryptocurrency fell below $50,000 for the first time since February on Monday, during one of its worst days in recent history.

Bitcoin Correlation with Stocks

While Monday’s price decline came amid broader turmoil in global markets, the recovery and eventual reversal mimicked what’s happening in traditional stock markets.

Bitcoin’s movements in relation to traditional stock markets, in particular, show that despite the hope that the cryptocurrency can act as a safe haven during times of economic uncertainty, it can act as a risky asset at times.

Bitcoin has moved more in line with the S&P 500 than gold this week, despite the asset’s oft-used “digital gold” moniker, according to Pearson correlation data from The Block.

However, many bitcoin holders were unimpressed by this week’s price action. “In crises, markets sell what they can, not what they want,” Strike CEO Jack Mallers wrote on X on Monday. “#Bitcoin is down because it was the only market open for sale Sunday night, not because the only fixed-supply currency we have is now worth less.”

Bitcoin ETFs Rebound, Still Negative Throughout the Week

The U.S. spot bitcoin exchange-traded fund (ETF) market also saw strong inflows of $194.6 million on Thursday, according to Farside Investors. However, flows are still net negative this week, with $77.3 million exiting the funds.

Things were looking better for spot ether ETFs this week, with $120.6 million in inflows, while outflows from the Grayscale Ethereum Trust (ETHE) slowed, even as ether prices (ETHUSD) continued to fall. Ether is trading close to $2,500.

Read the original article on Investopedia.