The cryptocurrency market is currently experiencing a period of stability, with Bitcoin holding steady around $89,000. This comes as U.S. equities enjoy a rally, marking their second consecutive day of gains. The shift in sentiment follows President Donald Trump”s recent decision to ease threats of European tariffs, which has spurred optimism in traditional markets.
As of the latest updates, Bitcoin is priced at $89,048, showing no significant change over the past 24 hours. In contrast, Ethereum has seen a decline of 1.75%, bringing its value down to $2,962, while Solana dipped 0.99% to $128.55. The total market capitalization of cryptocurrencies currently stands at $3.03 trillion, reflecting a slight decrease of 0.46% within the same timeframe.
This relatively muted performance in the crypto sector stands in stark contrast to the gains observed in traditional markets. The S&P 500 index rose by 0.55%, and the Nasdaq Composite increased by 0.91% after Trump indicated that a framework for a deal regarding Greenland was close. These stock market advances follow a significant rebound, with the S&P 500 achieving its largest daily percentage gain in two months earlier this week.
Despite the positive movements in equities, the market for spot bitcoin ETFs has seen substantial outflows, amounting to $479.7 million on Tuesday and $708.7 million the following day. This trend suggests that institutional investors are remaining cautious and are reducing their exposure to high-volatility assets amidst ongoing geopolitical uncertainties.
This divergence indicates that Bitcoin continues to be viewed as a risk-on asset, sensitive to macroeconomic fluctuations. Currently, it trades approximately 30% below its all-time highs reached earlier this cycle. Meanwhile, traditional safe-haven assets like gold and silver have surged, with gold reaching a record price of $4,930 per ounce and silver hitting all-time highs of $99 per ounce. This shift underscores a defensive stance among investors seeking security amid market volatility.
Recent economic data released on Thursday points to resilience in consumer spending and a third-quarter GDP growth rate of 4.4%, slightly exceeding expectations. Additionally, initial jobless claims rose less than anticipated, reinforcing the narrative of continued economic strength despite the uncertainties surrounding tariffs.
Looking ahead, several members of the tech sector, often referred to as the “Magnificent Seven,” are set to report next week. Their performance will be closely monitored due to their significant influence on market direction and the high valuations they currently hold. All seven of these stocks saw gains on Thursday, with Meta leading the pack with a 5.7% increase and Tesla following with a 4.2% rise.
