Bitcoin and Dow Jones on the rise while the Fed keeps spending money

On Monday, the US Federal Reserve announced that it plans to invest $ 750 billion in corporate bonds. The bank also plans to spend $ 1 trillion on infrastructure improvements. After it became known that the stock market would receive this cash injection, the value of futures contracts on the major American stock exchanges rose. The Dow Jones futures rose an average of 503 points. A similar trend can also be observed with the Nasdaq and S&P 500.At present, the Bitcoin price is strongly oriented to the American stock markets such as the Dow Jones.

 

Similarities have been found between the two

Both the Bitcoin price and the Dow Jones index rose in value after the Federal Reserve announced its measures. Even the percentage development looks almost identical. Although there now appears to be a correlation between Bitcoin and the Dow Jones, it does not mean that it will exist forever. If Bitcoin wants to establish itself as a real alternative, then the price must develop independently of the stock market. However, bitcoin is still a young investment and still has time to prove itself. We are excited to see when Bitcoin will disconnect from the stock markets!