From Lockstep to Lag, BTC Poised to Catch Up With Small Cap Highs
CoinDesk
Bitcoin is lagging behind the record highs set by the Russell 2000 index, but historical correlation suggests it is likely to catch up.Summary
The Russell 2000 Index of U.S. small-cap equities recently hit record highs, alongside major indices like the Dow Jones Industrial Average and S&P 500, while Bitcoin remains significantly below its October peak. Historically, since 2020, new highs in the Russell 2000 have typically coincided with new highs in Bitcoin, suggesting the cryptocurrency is poised to follow suit after this lag. This dynamic is relevant following the Federal Reserve's recent 25 basis-point rate reduction, which benefits smaller, riskier companies and, by extension, riskier assets like crypto. Furthermore, the Fed is injecting liquidity via a Treasury bill purchase program starting at $8.2 billion, which provides additional support for risk assets.
(Source：CoinDesk)