Cryptocurrencies skyrocketed this week even as U.S. equities briefly declined and a major crypto lender submitted a long-awaited bankruptcy filing.
Bitcoin was last higher by about 12% for the week, according to Coin Metrics, while ether has skyrocketed 14%.
In contrast, two of the three major stock averages were posting a losing week. The S&P 500 and Doe Jones Industrial Average shed 0.9% and 2.9%, respectively, for the week. The Nasdaq Composite, on the other hand, has been the outperformer. It surged for the week and has added 5% for the year, leading the other big indexes.
Bitcoin and ether gained 2.73% and 2.15%, respectively, in the same four-day period.
“Bitcoin seems to be trading along with the Nasdaq and risk assets again, after the past months of decoupling,” said Sylvia Jablonski, CEO, and chief investment officer at Defiance ETFs. “This is good news for crypto investors in that if inflation is falling, and the Fed is closer to the end than the beginning of economic tightening, risk assets will catch a breath of fresh air and perhaps lure investors back in.”
