29 May 2024
Bitcoin's 14% Weekly Gain Marks 'End Of An Era' As Big

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In a week marked by diverging market trends, Nasdaq’s slump, coupled with Bitcoin and Gold’s upward momentum has raised questions about a potential shift in the tech investment landscape.

In a week marked by diverging market trends, Nasdaq’s slump, coupled with Bitcoin and Gold’s upward momentum has raised questions about a potential shift in the tech investment landscape.

 

What Happened: This week, Bitcoin’s bullish momentum extended to the broader crypto market, with BTC gaining over 14%, reaching fresh yearly highs at $35,000. However, it consolidated at around $33,700, unable to breach that price level, reported CoinDesk.

See Also: Is Bitcoin a Good Investment?

Meanwhile, the CoinDesk Market Index saw an increase of 14%, and the CoinDesk Computing Sector outperformed, surging by over 17%, driven mainly by Chainlink and Fetch.AI tokens. 

Moreover, laggard sectors like decentralized finance and digitization saw gains of over 7%.

Notable performers included meme coin Pepe with a 76% advance after a token burn, Chainlink rallying over 44% due to the tokenization of real-world assets trend, and Injective Protocol’s native token adding 58% following a token upgrade in August.

What makes this positive week for cryptocurrencies even more significant is the poor performance of U.S. stocks. Bitcoin increased by 4.3 standard deviations this week compared to the previous three months, while the S&P 500 and Nasdaq dropped by nearly 2.5 to 3.0 standard deviations during the same period, the report noted.

Charlie Morris, founder of ByteTree, an investment advisory firm, noted that the Nasdaq’s slump amid Bitcoin’s and Gold’s advance reflects a shift in the investment landscape. 

“Big tech is expensive, and following underwhelming results this week, the sector no longer grows fast enough to justify premium prices,” he said. 

Morris concluded by saying, “It’s the end of an era, and tech investors should jump ship.”

Why It’s Important: Meanwhile, more people are hopeful that a regular Bitcoin investment fund, like the ones you can buy on the stock market, will get the green light from regulators soon. This optimism is due to the way rules and regulations for cryptocurrencies have been changing lately.

Earlier this week, cryptocurrency investment firm Galaxy Digital shared estimates saying that Bitcoin value could soar by a staggering 74% in the first year following the launch of spot Bitcoin exchange-traded funds in the U.S.

Photo by AlyoshinE on Leonardo

Originally Sourced by Benzinga.com

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