Bitcoin hits all-time highs against gold and Dow Jones and S&P 500 indices – Latest News, Breaking News, Top News Headlines
Dow Jones – Bitcoin hits all-time highs against gold and Dow Jones and S&P 500 indices – Latest News, Breaking News, Top News Headlines
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Continuing the notorious growth in the price of bitcoin, it hit all-time highs against the price of gold and the Dow Jones and Standard & Poor’s 500 stock indices (SP 500), and approached a similar milestone relative to the Nasdaq index.
The following graph shows that the previous historical maximum of the relationship between the price of BTC and the Dow Jones index was 0.8 and coincided with the historical maximum of the price of BTC, in December 2017. On this occasion, said index marks a new historical record of 1.02.
Regarding the S&P 500, it is considered one of the most representative indices of the US market situation. Although its growth was 15% in 2020, the following graph shows that the dominance of bitcoin over the S&P 500 is more noticeable.
As for gold, from its maximum reached on July 29, 2020, when it reached USD 2,001 an ounce, the precious metal registered a decreasing trend in the second half of the year. It closed 2020 with a price of USD 1,901, or a 21% appreciation compared to its price at the beginning of the year. Bitcoin appreciated twenty times more than gold during the year that just ended.
Regarding monthly closing prices, bitcoin also surpassed the 2017 high of its relationship against the Nasdaq index, as seen in the following graph:
The 2017 high of 3.07 for the ratio of bitcoin to the Nasdaq index has yet to be broken. Source: TradingView.
However, in the December daily values of that ratio, there was a historical maximum of 3.07, while the maximum reached at the end of the year is 2.44.
It is well known that the aforementioned indices are in a growing cycle, but bitcoin has exceeded its growth rates in 2020, as its appreciation in the year just ended was 402%. Bitcoin closed the year with a new all-time high above USD 29,000, and this Saturday, January 2, it set another record by exceeding USD 32,000.
In the market summary of bitcoin and cryptocurrencies in 2020, published by CriptoNoticias on December 27, The decoupling of the bitcoin price from traditional assets and indices and from gold in particular is highlighted. After the markets crashed in March 2020, bitcoin’s subsequent rally was marked by a growing correlation with the S&P 500, gold, and other traditional indices, but such coupling ceased in the second half as bitcoin intensified its bull cycle.
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Dow Jones – Bitcoin hits all-time highs against gold and Dow Jones and S&P 500 indices – Latest News, Breaking News, Top News Headlines
