"S&P 500 futures were down 0.19% after the index closed up 1.55% yesterday. Asia was mixed this morning and Europe followed by moving flat-to-down in early trading. Crypto may be suffering from a significant shift in sentiment: until October 6 this year, Bitcoin and gold had moved up together, though certainly not in tandem. However, both rose on a "safe haven" narrative as stocks soared, despite worries that the tech companies driving them are fuelling an AI bubble."
"A month on, the "Bitcoin is digital gold" and thus a " store of value " argument is seemingly in tatters, as Bitcoin and gold have diverged. Gold is moving toward a new record high while "the crypto market's total capitalization has now fallen by about 24% (over $1 trillion) since its October peak," according to a note by Deutsche Bank's Marion Laboure and Camilla Siazon shared yesterday."
Bitcoin lost another 1% overnight and traded around $87K, reversing a five-day rally. A general risk-off mood hit global markets: S&P 500 futures were down 0.19%, Asia was mixed, and Europe moved flat-to-down in early trading. Bitcoin and gold had moved up together until October 6 under a safe-haven narrative, and both reached record highs during the U.S. government shutdown. Deutsche Bank analysts suggested central banks might buy Bitcoin as a reserve asset. A month later, the link has broken: gold heads toward a new record while the crypto market capitalization has fallen about 24% (over $1 trillion) since its October peak.
Read at Fortune
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