As cryptocurrencies and other risk-sensitive assets rose in Asian trade, Bitcoin surpassed $20,000 for the first time in about a week.
Bitcoin, the most valuable cryptocurrency by market capitalization, was up more than 5% to $20,286. Ether, the second-largest cryptocurrency, gained 4% to a one-week high of $1,389.
The dollar dropped marginally in the broader market after reaching new highs.
The cryptocurrency market has seen tremendous gains, with Bitcoin, Ethereum, Solana, and Polkadot leading the way. Experts point out that the remarkable move occurs despite the fact that the stock markets, particularly Wall Street, continue to tumble, implying that the correlation of crypto assets with stocks may be coming to an end.
According to Coinbase Research, digital currencies react similarly to tech stocks and the Nasdaq. There was no association between the two before 2020. Bitcoin must perform consistently despite market sell-offs in order to operate as an inflation hedge.
