Bitcoin inches higher after outperforming stocks this year
Bitcoin gained 1% Friday morning, paring losses from earlier in the week that saw the crypto lose as much as 4%
Emre Kahraman/Shutterstock modified by Blockworks
The crypto markets rebounded Friday and equities traded sideways as traders made their final moves of 2023.
Bitcoin gained 1% Friday morning, paring losses from earlier in the week that saw the crypto lose as much as 4% between Monday and Tuesday. Bitcoin (BTC) remains up 14% over the month and 159% year-to-date.
Ether (ETH) moved 1.3% higher, extending gains from earlier in the week. Ether is up 17% over the month and 98% year-to-date.
Solana (SOL) was back in the green after losing as much as 9% Thursday. Analysts say the move was an expected pullback as traders lock in 2023 profits.
Read more: Meme coins unwind, SOL loses 9% in 24 hours
“Overall, the bullish trend is completely intact,” Roshun Patel, partner at Hack VC, said.
Buyers will keep coming even in the event of a 30%-40% decline for SOL, Patel added.
Equities were trading flat for a second day Friday, with the S&P 500 moving up 0.02% and the Nasdaq Composite losing 0.05%. Analysts were not surprised to see minimal moves this week, given the narratives investors still have to parse through in the new year.
“Looking forward, we can expect markets to get back to ‘normal’ next week as we start a new year and answer some pretty important (and still undecided) questions about economic growth, actual vs. expected Fed policy, and earnings,” Tom Essaye, founder of Sevens Report Research, said.
Bitcoin outperformed equities in 2023, with the Nasdaq 100 and S&P 500 indexes clocking around 56% and 25%, respectively, year-to-date as of Friday. Risk-on sentiment and growing optimism about a bitcoin spot exchange-traded fund have pushed the crypto higher in the last quarter of the year.
CME futures are now pricing in an 80% probability of a Federal Reserve interest rate cut in or before March 2024. If all goes according to plan, it’s likely to bode well for stocks.
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