Stock and crypto prices increased on Thursday as the US Dollar Index weakened. Some of the market’s largest assets all rose.
Crypto and stock prices climbed higher on Thursday, which should be a welcome development for long-suffering investors.
The leading digital currency, Bitcoin (BTC), was trading up at around $17K, while Ether (ETH) was up 1.4% and changing hands at $1,248. Several other altcoins were also trading higher yesterday, with Binance (BNB) adding 1.3% and XRP tacking on 1.6%. Furthermore, Polygon’s native token MATIC grew 1.3%, while Dogecoin (DOGE) gained 0.8%. However, Polkadot’s digital currency DOT was a notable exception, slipping 0.3% amid the otherwise bullish session.
The US Dollar Index also fell Thursday, slipping below 105 in trading, which is unsurprising given the broader crypto development. The trend is unsurprising because BTC traditionally strengthens when the US dollar weakens.
On Thursday, stocks also looked to reverse the previous five days of decline, with the S&P 500 climbing 0.7%. In addition, the Nasdaq 100 also gained 0.9% early yesterday EST. American crypto exchange Coinbase (NASDAQ: COIN) was among the equity leaders, rising more than 3% to trade above $42.64. At the time, the exchange’s stock was in danger of hitting new record lows, with its previous $41.23 descent seen on November 21st.
Other notable gainers in equities included the crypto-focused platform Silvergate (NYSE: SI) and MicroStrategy (NASDAQ: MSTR). Silvergate shares climbed 3.3% to $22.81 to move away from two-year lows. Meanwhile, MicroStrategy’s stock added 1.4% to change hands at $196.21. Multinational tech conglomerate Block (NYSE: SQ) also saw its shares trade up by 3.4% to $63.17.
However, not all crypto players were in the green during yesterday’s trading session. For instance, Grayscale Bitcoin Trust (GBTC) product plunged to an all-time low discount to NAV (Net Asset Value) of 47%.
Recap of Recent Interplay Between Prices of Crypto & Stocks
The latest general upswing in crypto and stock prices is a u-turn from the situation barely 48 hours ago. On December 7th, reports stated that digital currency stocks had plummeted again, although it did not signify a bearish turn on digital assets.
Meanwhile, on December 6th, crypto prices rose while traditional markets and tech stocks suffered setbacks. At the time, Bitcoin was trading at a hair over $17K, while Ether was up to $1,266.
Again, the US Dollar Index sank following the upswing in crypto prices. The index has already erased 50% of its gains this year. Christopher Wong, currency strategist at Singapore-based Overseas Chinese Banking Corp, offered another reason for the steep easing of dollar gains. According to Wong, China’s relaxation of Covid policies was also a causative factor. As he put it:
“Anticipation of China reopening, Fed policy calibration are key thematics that should keep risk proxies such as commodity-linked currencies supported. The strong non-farm payrolls report last Friday only saw a kneejerk bounce in the US dollar.”
Yesterday, traditional stock major indexes sustained losses as investors awaited fresh fiscal data for cues. At the time, the S&P 500 slipped 0.9% to 3,933.92, while the Nasdaq Composite dropped 0.51% to 10,958.55. However, the Dow Jones Industrial Average (DJIA) achieved a 1.58-point gain to finish the session at 33,597.92.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
