Bitcoin Circles $86,000 as S&P 500, Nasdaq Hit Record Highs and Ask Liquidity Caps Upside

Bitcoin kept trading around $86,000 on Tuesday, pushing toward $87,000 after another failed attempt to break higher on Monday. Ordermbook data shows the largest cluster of liquidity near $87,000, with a ladder of ask orders stretching down to $86,500.

US Stocks Break to New All-Time Highs

Wall Street posted fresh records after the open. The S&P 500 gained 0.8% to 7,835, while the Nasdaq 100 reached 31,312 and the Nasdaq Composite hit 27,683. The Kobeissi Letter noted that the S&P 500 has added 24%, or $71.3 trillion, in value since March 30.

Mosaic Asset Company said cooling expectations of Federal Reserve rate hikes in the fourth quarter could drive a durable rally. It also warned that market breadth remains near a six-month low, with only 25% of stocks above their 50-day moving average last week and tech supplying most of the gains. Mosaic added that similar oversold conditions in late March helped spark a reversal.

Bitcoin and S&P 500 Correlation Rises

CryptoQuant data shows the correlation between Bitcoin and the S&P 500 stood at 0.51 as of Oct. 2, a modest positive reading and the highest since early June. That link suggests Bitcoin could benefit if equity strength continues, although it has not yet followed stocks to new highs.