Bitcoin rises 3% as S&P 500’s hits all-time high

Bitcoin saw a notable increase of 3% today, reaching a price of $62,400. This upward momentum coincides with the S&P 500 reaching 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 achieving its strongest year-to-date performance in 24 years, up over 22%.

In a recent post on X, The Kobeissi Letter described the current stock market run as “the most resilient market in history.”

Over the past year, the S&P 500 has gained an impressive $13 trillion in market capitalization. If this momentum continues, the index is expected to achieve a 30% gain in 2024, which would be the largest annual increase since 1997.

Amid the broader bullish market sentiment, Bitcoin has regained ground after a brief dip following the release of the latest CPI numbers. The asset recovered from a low of $59,000 to a high of $62,400, with its market capitalization 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 drop below $60,200 could signal another pullback for traders.

Today’s Producer Price Index (PPI) data from the US, which exceeded expectations, signals rising inflationary pressures, adding weight to Bitcoin’s appeal as a hedge asset. The PPI for September came in at 1.8%, above the expected 1.6%, reinforcing concerns that inflation remains a significant challenge for the Fed.

Despite inflation concerns, the Fed’s 0.5% interest rate cut last month has given a boost to both equities and crypto. Investors are now closely watching the FedWatch Tool, which shows an 88% probability of another rate cut by 25 basis points in November.

The S&P 500 continues to hit record highs, while Bitcoin has regained some ground, reflecting broader optimism. However, market observers remain cautious as potential volatility looms with future Fed decisions.

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