Why the S&P 500 hitting a new all-time high is bullish for Bitcoin

Bitcoin could well be destined to break its all-time high in the coming months in light of a major rally for the S&P 500

The S&P 500 has soared to record highs today after earnings reports signalled that a predicted US recession is now very unlikely.

CBOE’s S&P 500 ETF is now trading at 303.57, eclipsing its previous all-time high of 302.29 on September 10.

The US market has now managed to shrug off any concerns from the looming trade war with China, with the possibility of a deal becoming increasingly likely.

Bitcoin coincided with the stock market’s rise as it defied all technical levels to surge by more than 40% in a matter of hours on Friday.

It is now trading at around $9,350 and looks like it may test the psychological level of $10,000 in the coming days.

Bitcoin rallied following comments from Chinese President Xi Jinping, who revealed that China will be at the forefront of innovation for blockchain technology.

In September, Fundstrat co-founder Thomas Lee predicted that Bitcoin could well surpass its previous all-time high, but it would depend on the S&P 500’s performance.

He wrote: “Unpopular opinion, Bitcoin won’t make a new high until S&P 500 makes a new high.”

“Since 2009, best years for Bitcoin is when S&P 500 >15%.”

If Bitcoin can rally above $10,000, it could well provide a significant platform for a further rally above $14,000, which was the yearly high in June.

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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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