Bitcoin Gains, Equities Stall: Recap of Friday’s Market Moves

Friday witnessed a revival in the cryptocurrency markets and sideways movement in equities as investors executed their final transactions of 2023. Bitcoin increased by 1% on Friday morning, recouping some of the 4% decline the cryptocurrency experienced between Monday and Tuesday of the previous week.

Bitcoin (BTC) has increased by 14% month-over-month and 159% annually.

Ether (ETH) extended its weekly gains by 1.3% to close the day up. Ether has gained 98% year-to-date and 17% month-over-month.

Solana (SOL) returned to the green on Thursday, following a 9% decline. The move was an anticipated pullback, according to analysts, as speculators locked in profits for 2023.

“Overall, the bullish trajectory remains intact,” said Hack VC partner Roshun Patel.

Even if SOL experiences a 30%–40% decline, buyers will continue to visit, Patel added.

Friday saw a second day of lacklustre trading for equities, with the S&P 500 gaining 0.02% and the Nasdaq Composite falling 0.05%.

The lack of substantial activity this week did not surprise analysts, considering the narratives that investors are still analysing in the new year.

“Looking ahead, we can anticipate markets to return to ‘normal’ the following week as we begin the year and receive answers to some fairly significant (yet unresolved) inquiries regarding earnings, actual versus anticipated Fed policy, and economic growth,” said Tom Essaye, proprietor of Sevens Report Research.

Bitcoin exhibited superior performance compared to equities in 2023, as evidenced by the Nasdaq 100 and S&P 500 indexes reaching approximately 56% and 25% year-to-date as of Friday.

Increasing optimism regarding a Bitcoin spot exchange-traded fund and risk-on sentiment have propelled the cryptocurrency higher in the fourth quarter of the year.

Presently, an 80% probability of a Federal Reserve interest rate cut occurring in or before March 2024 is factored into CME futures. Stocks are likely to fare well if everything proceeds as intended.