- The US debt ceiling decision propelled the S&P 500 and gold prices, outpacing Bitcoin and Ethereum.
- Bitcoin and Ethereum were trading with profits on a daily time frame at the time of writing.
In a fascinating turn of events, prices of the S&P 500 and gold have jumped and surpassed Bitcoin [BTC] and Ethereum [ETH]. This remarkable shift can be attributed to the decision of the US Congress on June 1, which voted to suspend the country’s debt ceiling.
Bitcoin and Ethereum among traditional stocks
The United States Congress successfully approved an agreement that increases the government’s borrowing limit to avert the potential disaster of defaulting on debt. The Senate approved the agreement on 1 June, and the House of Representatives approved it the day before.
Once signed by President Joe Biden, this agreement will allow the federal government to borrow money until after the next presidential election in November 2024.
The trend of cryptos and stocks
Fascinating insights Sanitation revealed that the decision to raise the debt ceiling had a major impact on the price movements of various assets.
Traditional stocks, as exemplified by the S&P 500, rose notably, reaching their highest level since August. Moreover, the gold price also experienced an upward lift, as indicated by the chart.
At the time of writing, the S&P 500 price had passed the $4,000 mark, while gold crossed the $1,900 mark.
Source: Sentiment
On the other hand, the chart showed that cryptocurrencies, including Bitcoin and Ethereum, underperformed stocks. They underperformed traditional stocks relatively and showed weak correlation.
Bitcoin and Ethereum price development
Bitcoin has recently witnessed a series of swings, fluctuating between highs and lows, but consistently stayed below the $30,000 price threshold. At the time of writing, Bitcoin was trading at around USD 27,160, showing modest gains of over 1%.
It was showing a bearish trend at the time of writing as indicated by the Relative Strength Index (RSI) on a daily time frame. Nevertheless, an upward trend was noticeable in its RSI line, thanks to an increase in price.
Source: TradingView
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Similarly, Ethereum also traded with profit. Its value at the time of writing was around $1,890, reflecting a gain of more than 1.5%. Unlike Bitcoin, Ethereum experienced a bullish trend, according to the RSI line.
Source: TradingView
Looking ahead, it remains uncertain whether there will be a stronger correlation between the price movements of Bitcoin, Ethereum, the S&P 500 and gold in the coming days.