Key takeaways
- S&P 500 hits record high as Bitcoin’s 3% rise signals market optimism.
- The S&P 500’s potential 30% gain in 2024 would mark its largest annual rise since 1997.
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Bitcoin saw a notable 3% increase today, reaching a price of $62,400. This bullish momentum coincides with the S&P 500 hitting an all-time high of 5,819, currently trading at 5,809.
Bitcoin’s rally comes at a time when traditional assets are seeing significant gains, with the S&P 500 delivering its strongest annual performance in 24 years, up more than 22%.
In a recent post onThe Kobeissi Letter describes the current stock market rush as “the most resilient market in history.”
Over the past year, the S&P 500 Index has gained an impressive market capitalization of $13 trillion. If this dynamic continues, the index should achieve a gain of 30% in 2024, which would constitute the largest annual increase since 1997.
Amid general bullish market sentiment, Bitcoin regained some ground after a brief decline following the release of the latest CPI figures. The asset rose from a low of $59,000 to a high of $62,400, with the market cap surpassing $1.23 trillion.
Analysts are closely monitoring key levels, with $63,900 as a potential breakout point and resistance around $65,000. However, a decline below $60,200 could signal further pullback for traders.
Current U.S. Producer Price Index (PPI) data, which exceeded expectations, signals increasing inflationary pressures, adding weight to Bitcoin’s appeal as a hedging asset. The PPI for September came in at 1.8%, above the 1.6% expected, reinforcing concerns that inflation remains a significant challenge for the Fed.
Despite inflation concerns, the Fed’s 0.5% interest rate cut last month provided a boost to stocks and cryptocurrencies. Investors are now watching closely FedWatch toolwhich shows an 88% probability of another 25 basis point rate cut in November.
The S&P 500 continues to hit record highs, while Bitcoin has regained ground, reflecting broader optimism. However, market observers remain cautious about potential volatility linked to future Fed decisions.
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