Bitcoin (BTC) and other cryptocurrencies continue to struggle as the U.S. stock market hits new all-time highs.
In early trading on Aug. 5, Bitcoin was trading at $64,400 U.S. and stuck below resistance at $65,000 U.S., largely the same place the digital asset has been at since the end of June.
Other cryptocurrencies also remain rangebound, with Ethereum (ETH) trading at $1,880 U.S. and stuck below the key level of $2,000 U.S.
Digital assets continue to trade sideways despite U.S. equity markets hitting record highs to start August.
Both the blue-chip Dow Jones Industrial Average and the benchmark S&P 500 index hit record highs on Aug. 4, fueled by declining crude oil prices and strong corporate earnings.
The S&P 500 closed at a record high of 7,736.52, rising 1.79% on the day, in a massive Wall Street rally.
U.S. stocks jumped on reports that the Trump administration is close to reaching a deal with Iran to reopen the Strait of Hormuz shipping lane, sending crude oil prices down sharply.
The Dow Jones Industrial Average, comprised of 30 blue-chip stocks, surged more than 900 points to end at 54,085.88, its best day in nearly two months.
While it didn’t hit a record, the technology-laden Nasdaq Composite (NDAQ) index rose nearly 3% to close at 26,584.99.
Unfortunately, cryptocurrencies aren’t sharing in the current rally. After choppy trading and volatility throughout July, investors are returning to equities to start August.
The capital flowing into stocks appears to be coming at the expense of crypto, say analysts.
Bitcoin, Ethereum, and other digital assets continue to struggle to break out of a trading range they have been stuck in for several months, with few near-term catalysts on the horizon.
It has also been reported that the first exchange-traded fund (ETF) that tracks the spot price of Bitcoin is closing in the U.S. due to dwindling capital inflows.
Crypto asset manager Hashdex said that it is closing and liquidating its $14.7 million U.S. spot Bitcoin ETF.
Hashdex cited concerns over its Bitcoin ETF’s liquidity and operating costs when announcing the closure.
Bitcoin hit an all-time high of just over $126,000 U.S. last October.
