Bitcoin rises 3% as S&P 500's hits all-time high

Bitcoin price climbs to $62,400 as S&P 500 hits 5,819, with investors eyeing Fed decisions and inflation pressures. S&P 500 reaches all-time high as Bitcoin’s 3% rise signals market optimism. The S&P 500's potential 30% gain in 2024 would mark its highest annual increase since 1997.

Bitcoin rises 3% with the S&P 500 achieving its strongest

Bitcoin surged by 3% today, reaching $62,400, as the cryptocurrency market gained momentum. This rise comes alongside the S&P 500, which hit a record high of 5,819, and is currently trading at 5,809.

The Bitcoin rally coincides with strong performance in traditional markets, as the S&P 500 posts its best year-to-date gains in 24 years, up more than 22%.

Over the past year, the S&P 500 has added a remarkable $13 trillion in market capitalization. If this momentum persists, the index could see a 30% gain in 2024, marking its biggest annual increase since 1997.

Amid the strong market sentiment, Bitcoin has rebounded after a brief dip triggered by the latest CPI data. The cryptocurrency bounced back from a low of $59,000 to reach $62,400, pushing its market cap beyond $1.23 trillion.

Analysts are watching key levels closely, with $63,900 eyed as a potential breakout point and resistance expected around $65,000. On the downside, a drop below $60,200 could indicate another pullback for traders.

Rising Inflation Pressures Boost Bitcoin Appeal as Fed Rate Cuts Lift Markets

The latest US Producer Price Index (PPI) data exceeded expectations, signaling increased inflationary pressures and bolstering Bitcoin’s attractiveness as a hedge. September's PPI rose by 1.8%, higher than the anticipated 1.6%, heightening concerns that inflation remains a persistent challenge for the Federal Reserve.

Despite these inflation worries, the Fed's 0.5% interest rate cut last month has provided a boost to both equities and cryptocurrencies. Investors are now closely tracking the FedWatch Tool, which indicates an 88% likelihood of another 25-basis-point rate cut in November.

The S&P 500 continues to reach record highs, while Bitcoin has recovered some losses, reflecting overall market optimism. Still, traders remain cautious, anticipating potential volatility as future Fed decisions unfold.

BTC Post-Halving Rally Is On The Horizon

The post-halving rally for the flagship crypto is on the horizon and could happen anytime from now. BTC usually records a significant price surge between 150 and 170 days after the halving period. The price rally is imminent because it has been over 170 days since the halving event in April.

Veteran trader Peter Brandt recently highlighted the post-halving that the flagship crypto usually enjoys while predicting a BTC rally to $135,000.

The BTC rally could soon begin with positive Bitcoin news, like an additional stimulus package from China, sending the flagship crypto’s price flying. In the meantime, the $66,000 price level is one to watch out for, as a breakout above that level is likely the beginning of a bullish reversal.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.