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— Kyle Torpey

Bitcoin briefly reaches $61K before fluctuating, mirroring the fluctuations seen in the stock market

Bitcoin (BTCUSD) briefly surged past $61,000 early Friday, buoyed by Thursday’s stock market rally. However, the cryptocurrency has since fluctuated around the $60,000 mark, influenced by movements in the stock market.

This follows a sharp drop on Monday, when Bitcoin fell below $50,000 for the first time since February, coinciding with one of the worst days for stocks in recent memory.

Bitcoin's Relationship with Stock Markets

Just as Monday’s price drop occurred amid broader global market instability, Bitcoin's price rebound and subsequent fluctuations have mirrored trends seen in traditional equity markets.

Bitcoin's price movements have notably aligned more closely with the S&P 500 this week compared to gold, despite Bitcoin's common reference as "digital gold" and its perceived role as a safe haven during economic uncertainty, according to Pearson correlation data from The Block.

Despite these fluctuations, many Bitcoin investors remained unfazed by the week’s price dynamics. "During crises, markets sell what they can, not what they want," Strike CEO Jack Mallers noted on X on Monday. “#Bitcoin is down because it was the only market open to sell on Sunday night, not because the fixed supply of money has lost its value,” Mallers added.

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Bitcoin ETFs Make a Comeback but Remain in the Red for the Week

The U.S. spot Bitcoin exchange-traded fund (ETF) market experienced significant inflows of $194.6 million on Thursday, as reported by Farside Investors. Despite this, the net flow for the week remains negative, with $77.3 million exiting the funds.

In contrast, spot Ether ETFs have performed better this week, seeing inflows of $120.6 million. Outflows from the Grayscale Ethereum Trust (ETHE) have tapered off, even though Ether prices (ETHUSD) have continued to decline, with Ether trading near $2,500.