Since June, Bitcoin (BTC-USD) demonstrated considerable price stability. It held the 29,500 to $30,000 range despite the stock market’s wavering. Usually, and especially in 2022, BTC prices follow the stock market index, the S&P 500.
Bitcoin is breaking free from its correlation to the stock market. By failing to break below around $30,000 for too long, it strengthens the confidence of BTC holders. Even after Moody’s, a bond credit rating service downgraded the rating of 10 U.S. banks, it did not hurt BTC.
Chances are increasing that BTC will become an alternative holding to the U.S. dollar. Gold is not acting in that role. Since peaking in May, gold failed to break out above $2,000. It closed on Aug. 11, 2023, at $1,917.
Long-term investors who treated gold as a reserve currency may consider Bitcoin instead. It is on the cusp of getting the SEC’s support. The SEC delayed its decision to approve ARK Invest’s proposal for an ETF that invests directly in Bitcoin.
BlackRock (BLK) and Fidelity Investments are also vying for offering securities to investors that hold Bitcoin.
Your Takeaway
Fraudulent crypto platforms and firms that lent irresponsibly tarnished the industry. Bitcoin is becoming viewed as one of the few hard assets in this market.
