After five consecutive days of losses, bitcoin finally snaps and regain its valuation. Consequently, other cryptocurrencies also grew higher following bitcoin. The rise in bitcoin, however, is inconsistent with stocks valuation. Stocks recorded a slight decline as the Fed meeting is coming.
Bitcoin valuation rises, yet still far from its best-performing record
Bitcoin has just recently suffered a 19% downfall from its $65,000 record from mid-April. The cryptocurrency, though, is still performing much better than the previous year due to the 80% rise just from this year alone. Bitcoin has been on a constant rise as mainstream investors and big-name companies like Tesla showed their interest in cryptocurrency.
Bitcoin’s valuation recovered from the slump sooner than expected. According to Reuters‘ report, bitcoin snapped from five straight days of losses with an 8% incline on Monday.
Additionally, bitcoin’s recent rise on Sunday valued the cryptocurrency at $52,452, 6.7% higher than its lowest since early March. Consequently, Ethereum and XRP also increased 5% and 11% respectively.
Unlike bitcoin, stocks are bleak
On the other hand, stocks are performing relatively weak on Monday. At the moment, a slight bump is expected to occur due to concerns over economic recovery. The speed of the market’s rally is overshadowing the possibility of a faster economic recovery. The upcoming US Federal Reserve policy meeting is expected to add more weight to the concerns as well.
Investors have started to refrain from taking on large positions ahead of the two-day Fed meeting scheduled for Tuesday. Additionally, investors are being very cautious over the impending release of quarterly gross domestic product numbers for the United States.
Quoted from Reuters, investors’ hesitance led the Euro STOXX 600 0.1% down by 1050 GMT and Germany’s DAX 0.13% lower. Meanwhile, Britain’s FTSE 100 was flat. Asian shares rallied, however. Despite a late selloff in Chinese stocks, MSCI’s broadest index of Asia-Pacific shares outside Japan hit its highest level since March 12. As a result, the MSCI world equity index, which tracks shares in 49 countries, rose 0.16%, offsetting the declines in Europe.
Stocks, like most other risk assets, are experiencing a huge rally. Investors bet on a rapid post-pandemic economic recovery fueled by massive government and central bank stimulus, and the MSCI world index has only had three down months in the last 12 months, rising nearly 5% this month and 9% for the year.