The dynamics of the stock market have changed dramatically as institutional investors, driven by hedge fund managers, are fueling a boom in demand for digital assets.
Michael Burry, a well-known investor who rose to fame for his accurate forecasts during the 2008 financial crisis, is in the news once more. He recently caused a stir when he bet a huge $1.6 billion on the impending stock market catastrophe. Given Burry's track record of making pin-point accurate market predictions, this bold move has attracted attention.
Meanwhile, Bitcoin investment products are becoming more and more appealing. According to CoinShares, a substantial influx of more than $27 million was recorded in the past week alone. With investors seeking exposure to the world of crypto, this increase in investments clearly shows the growing interest in digital currencies.
ETF frenzy continues
The current craze surrounding cryptocurrency exchange-traded funds (ETFs) highlights the massive demand for products linked to digital assets. The idea of these ETFs, which give investors a way to indirectly join the bitcoin market through more well-known investing channels, is being enthusiastically embraced by investors. However, It is anticipated that the US Securities and Exchange Commission (SEC) will once again delay the approval of the cryptocurrency ETFs. This is credited to the painstaking work of the US Congress, which is currently developing thorough legislative frameworks specifically designed to address the difficulties presented by cryptocurrencies.
S&P 500 versus cryptocurrencies in August
According to study by on-chain intelligence platform Santiment, the de-linking between cryptocurrency prices and stock indexes, which started in July, has continued into August with positive results for the crypto sector.
“Bitcoin continues to stay in a tight price range at $29.2k, but this flat behavior is outperforming equities markets like the SP500 here in August. The correlation break that began in mid-July is historically beneficial to crypto prices” Santiment noted on Twitter.
Surprisingly, the S&P 500 index declined by 3.3 percent during the same timeframe while the price of Bitcoin increased modestly by 1 percent.
It's important to note that Bitcoin's price has continued to trade above $29.1k, a crucial support level that will determine whether or not the bullish momentum will continue in the next weeks. However, a general feeling of uncertainty may halt the near-term gains for the entire crypto industry.