itcoin">Bitcoin">itcoin">Bitcoin trails behind raging stock markets, showing subdued price action under $42,000 this week – a lukewarm response as the S&P 500 clinches fresh record peaks. The divergence comes even as analysts predict the Fed will stand pat on interest rates at its upcoming January 30-31 FOMC meeting.
The shift in market momentum has propelled the S&P 500 to new heights, surging past levels last seen in January 2022 per the Financial Times. The rally brings a wave of optimism, especially for tech stocks, as quarterly earnings reports loom.
In contrast, itcoin">Bitcoin struggles to find momentum despite historically high correlation with tech stocks. Pantera Capital posits crypto bull runs often see itcoin">Bitcoin lead first before attention shifts to higher-growth altcoins.
As crypto investors chase innovations in DeFi, NFTs and more, itcoin">Bitcoin dominance declined from 55% to 51% on TradingView. With market confidence lifted by recent itcoin">Bitcoin ETF approvals, the wider crypto sector could continue outpacing the pioneer asset.
But all eyes now fixate on March and beyond – where Bloomberg analysts expect any concrete Fed policy changes. Upcoming itcoin">Bitcoin block reward halvings could interplay with policy easing as well. For now, range bound price action persists for digital gold.
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