Why stock market, gold price, Bitcoin price moving in one direction — explained
Stock market vs gold price vs Bitcoin price: After climbing to a new lifetime high, shar selling was witnessed across sectors in the Indian stock market. However, to the surprise of the investors, gold price and Bitcoin prices too witnessed selling pressure in the week gone by. According to experts, the Indian stock market witnessed selling pressure due to the 'shar test' being suggested by the mutual funds' body AMFI to the AMCs after the market regulator SEBI raised concern over the froth building up in the small and mid-cap stocks.
They said that global cues also went negative after the hotter-than-expected US CPI and PPI print for February 2024. This dragged key benchmark indices, which include large-cap quality stocks as well. The disappointing US inflation data put down the probability of a near-term US Fed interest rate cut that dragged gold prices.
They said that the decentralized digital currency market lacked a clear outlook after the weak macroeconomic developments amid rising geopolitical tension in the Middle East. This triggered profit booking in Bitcoin holdings. On reasons for the synchronized movement of the stock market, gold, and Bitcoin prices, Sathvik Vishwanath, Co-Founder & CEO at Unocoin said, "Historically, these assets have often moved independently of each other due to their different characteristics and drivers.
Gold is traditionally considered a safe-haven asset that is sought after in times of economic uncertainty or inflation. Stocks, on the other hand, represent ownership stakes in companies and are influenced by factors such as company earnings, economic growth, and investor sentiment. Meanwhile, Bitcoin, a decentralized digital currency, has been touted as both a store of value and a
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