The current investor rotation out of technology stocks is seen as providing a tailwind to cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
Analysts note that cryptocurrency prices are rebounding after a big selloff this spring even as stocks associated with artificial intelligence and mega-cap tech names sink.
Bitcoin’s price is currently hovering near $65,000 U.S. while the price of Ethereum is close to $3,500 U.S., with each digital asset having gained nearly 10% in the past week.
At the same time, the technology-laden Nasdaq index has slumped 4% as investors dump tech stocks and rotate capital into value and small-cap securities.
The Russell 2000, a small-cap index, has risen more than 12% in the last week, according to market data.
The sector rotation is being driven by signs of cooling inflation and growing confidence that the U.S. Federal Reserve will lower interest rates later this year.
The sector rotation is proving to be positive for cryptocurrencies, which had fallen sharply in the year’s second quarter after hitting all-time highs in the first three months of 2024.
There is likely to be an additional catalyst added to the crypto sector in coming days as spot Ethereum exchange-traded funds (ETFs) are expected to begin trading on or around July 23.
The launch of spot Bitcoin ETFs in January of this year led the crypto market to rally to an all-time high by mid-March.
Related Stories
This article was originally published by a www.baystreet.ca . Read the Original article here. .
Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. BitcoinNews.best does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.