By Frances Yue
Bitcoin and ether have outperformed major stock indexes so far this week, despite the dollar’s continued rally as Treasury yields have climbed.
Bitcoin /zigman2/quotes/31322028/realtime BTCUSD +0.26% lost about 1.4% on Thursday, leaving it with a 2% gain so far this week, according to CoinDesk data. Ether /zigman2/quotes/108573964/realtime ETHUSD +0.53% dipped about 0.5% Thursday, but was up roughly 2.2% so far this week.
In comparison, the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.55% declined 1.2% Thursday with a 0.9% loss week-to-date, according to FactSet data. The S&P 50 0 /zigman2/quotes/210599714/realtime SPX +0.75% eased 1.8%, looking at a 1.1% loss so far this week. The tech-heavy Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +1.13% went 2.6% lower Thursday, down 1% week-to-date.
This is one of the few circumstances where crypto and stock prices “decoupled”. For the past few months, the two assets have been trading in tandem most of the time, as concerns about Federal Reserve’s tightening and global growth pressured almost all risk assets.
On-chain data showed that bitcoin short-term holders’ realized price has fallen below that of long-term holders last weekend, according Glassnode. That has previously happened only three times in bitcoin’s history, indicating a bottoming process, according to Marcus Sotiriou, analyst at digital asset broker GlobalBlock.
When short-term holders’ realized price rise back above that of long-term holders, it may signal a restart of the bull market, if bitcoin follows its previous patterns, Sotiriou said in a Thursday note.