Bitcoin hits $70K as U.S. stocks pause on Memorial Day
On May 27th, as the United States observed Memorial Day, a notable divergence unfolded in the financial sectors.
While the U.S. stock exchanges, including Nasdaq and the New York Stock Exchange (NYSE), took a pause for the holiday, the cryptocurrency sector was bustling with activity.
Surge in the crypto sector
Bitcoin [BTC] ascended to the $70,000 threshold, while numerous alternative cryptocurrencies showcased impressive gains in their daily performance. Ethereum [ETH] similarly touched the $4,000 mark briefly, contributing to the buoyancy in the market.
Mirroring these observations, a post from Santiment on X (previously known as Twitter) mentioned,
“Bitcoin has once again attained a market value of $70K, even as #MemorialDay has led to a standstill in the US #equities markets. This upsurge is particularly promising, highlighting the potential for #crypto markets to excel on the uncommon weekdays when they are not influenced by the stock market, a pattern observed since 2022.”
Furthermore, TheoTrader commented,
“Drawing from seasonality trends, the week following Memorial Day usually sees a rally, suggesting a bullish outlook ahead.”
The future doesn't mimic the past
Yet, this pattern represents an anomaly.
A report by Bloomberg indicated that the crypto market volume plummeted by 43% in 2020 and 35% in 2021 during the Memorial Day timeframe, implying that this holiday typically sees reduced activity.
However, 2024 has ushered in unique phenomena and unusual market movements, with this being a prime example. Ryan Detrick, Chief Market Strategist at CarsonGroupLLC, remarked,
“Election years typically see stock prices swaying without a definitive trend before Memorial Day. However, the period following Memorial Day has often witnessed a surge in stock values, commonly referred to as a summer rally.”
Anticipating the future
With the stock market on hiatus during Memorial Day, it's uncertain whether Ryan’s forecast will materialize.
Yet, in the constantly active domain of cryptocurrencies, we are beginning to see preliminary indications of possible future directions.
As conventional assets maintain their seasonal trends, the autonomous and volatile nature of the cryptocurrency market offers both prospects and challenges for investors.
