The crypto sector has been facing huge selling pressure over the past few months but Bitcoin (BTC) has outperformed major traditional market assets.
As per a report by Arcane Research, BTC has managed to increase in values by 0.8% in the month of September with regards to USD. The number one crypto asset has also outclassed both U.S indexes and gold.
The dollar strength index (DXY) was the only benchmark among the major macro indices which have given better returns than Bitcoin. Dollar has outperformed all the other currencies, while BTC surpassed the dollar this month.
Bitcoin (BTC) values have tanked by 4.5% in the past one month and when reports last came in it was changing hands at $19,152.
The report also pinned the blame of the underperformance of the crypto sector to the poor performance of Ethereum in September. The total market capitalization has tanked below the crucial $1 trillion mark.
Ethereum the number two crypto asset has not performed as expected especially after the huge expectations post Merge software update. In the past one-month ETH values have tanked by 12% and when reports last came in was changing hands at an average price of $1,313,
Correlations Hint An Increase In Future
BTC values have managed to hold and perform better as compared to other assets and there is a growing correlation with the traditional market. After the release of data pertaining to Consumer Price Index and the FOMC Meeting Nasdaq and S&P 500’s 30-day correlation has reached its highest level since July. The report also highlights the Bitcoin’s correlation with gold is on a surge over the past few months and has surged to a yearly high of 0.52.
When the FOMC was in a meeting last week, Bitcoin (BTC) volatility peaked and when the FED increased the interest rates by 75bps. However, BTC values tanked by around 5% in one minute post the FOMC statement.