Cryptocurrencies Surge as Stock Market Declines

The cryptocurrency market surprisingly surged. Bitcoin rose from the $18,000-$19,000 range and reached the $20,000 mark again. It is up by more than 5% over the last 24 hours, now trading at $20.2K. Bitcoin is hoping to buck the trend of the drop in stock prices.

Ethereum also surged significantly for the first time since its integration. Ethereum hiked 6% in only 24 hours. It broke its $1,400 barrier and came back on track, now trading at $1,385.

Other notable gainers in the market were Solana (+7%), Terra Classic (+56%), and Polygon (+5%). Since the stock market is experiencing a market sell-off, the surge in the cryptocurrency market comes as a surprise. While S&P 500 lost 1%, NASDAQ-100 lost 0.5%. The cryptocurrency market undoubtedly has a robust relationship with the overall market.

The beta between cryptocurrency and the conventional market is 2. Its behavior is similar to NASDAQ’s and other tech equities. Before 2020, the two were not related at all.

But bitcoin is still subject to the stock market. The recovery of bitcoin came about due to less speculation than the S&P 500. Similar to how cryptocurrency did not bounce back as quickly as the S&P 500, it is not collapsing at the same rate.