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Wall Street Is on a Bull Run—It’s Nothing Compared to Bitcoin

Author: Content Editor
The S&P 500 reached a record high, marking the two-year anniversary of a bull market in U.S. equities. During this period, Bitcoin's price has risen by approximately 220%, from $20,000 to over $63,000. The tech-heavy Nasdaq composite has climbed 78%, and the Dow Jones Industrial Average has risen 43%, but both can't compete with Bitcoin's gains. Analysts attribute the similar patterns of Bitcoin and the stock market to various factors, including macroeconomic conditions and traditional investors gaining exposure to Bitcoin through products. Despite struggling to reach a new peak price, some analysts believe Bitcoin's price could increase by the end of the year. The comparable returns of Bitcoin and the S&P 500 over the past two years are partly due to increased liquidity from the Federal Reserve's balance sheet expansion. While the overlapping bull runs of Bitcoin and the stock market have been impacted by macroeconomic factors, the launch of spot Bitcoin ETFs has significantly influenced Bitcoin's price. As institutional investors participate more in crypto, the correlation between Bitcoin and equities is expected to increase as it behaves more like other asset classes.

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