This Is The Bitcoin Price If It Matches The Stock Market

The US Stock Market Hits New Heights

The US stock market reached a significant milestone, closing at unprecedented highs this week. The S&P 500 Index finished at 6,791.68, while the US 100 Index climbed to 25,358.15, marking both indices at all-time peaks.

Investor optimism is strong, fueled by easing inflation numbers, robust corporate earnings, and the anticipated interest rate cuts from the US Federal Reserve. In this context, cryptocurrency analyst Ash Crypto shared an intriguing question on X, pondering how high Bitcoin might rise once it aligns with the US stock market.

US Stock Market’s Record Momentum

The S&P 500’s remarkable rally is a continuation of the stock market’s steady upward trend seen in the latter half of this year. Factors like the Fed’s September rate cut, expectations for more cuts, and confidence in company performance have played significant roles.

The tech-centric US 100 index notably surged past 25,000 for the first time this week, thanks to impressive earnings from major technology firms. This development suggests that the long-term bullish outlook for traditional markets is holding strong.

What’s particularly striking is the disparity between Wall Street’s soaring heights and Bitcoin’s relative stagnation. After an impressive spike to over $126,000 in October, major cryptocurrencies faced a sudden downturn, leaving many traders shocked. Currently, Bitcoin is hovering around $111,000, even as other asset classes continue to perform well.

Ash Crypto’s commentary indicates that Bitcoin’s price might be experiencing artificial suppression, especially when compared to the positive movements of the S&P 500 and US 100 indices. If Bitcoin had mirrored those gains, it might already be trading between $140,000 and $150,000.

When Will Bitcoin Catch Up?

Generally, the initial surge of liquidity sees action in the stock market whenever the Fed slows its quantitative tightening (QT) or indicates a shift towards easier monetary conditions. This happens because the stock market houses the largest pools of capital and institutional investors, making it the first to react.

Bitcoin typically lags behind this initial phase as it operates outside conventional financial frameworks. However, once the liquidity begins to transition into other assets, Bitcoin has historically escalated much faster than stocks. Ash Crypto anticipates that Bitcoin’s price will soon rise, potentially reaching $130,000.

Moreover, Bitcoin’s on-chain metrics are already indicating a potential upward movement. Recent data shows that the available sell-side liquidity—total Bitcoin ready for sale on exchanges—has dropped to 3.12 million BTC, marking the lowest level in seven years. Additionally, long-term investors have recently acquired 373,700 BTC within the last month.