Bitcoin beats the heat in a jumpin’ July

It's been a good month for bitcoin — and we haven't talked about it for a long time.

After several months of free fall in July, it jumped by more than 17%, which was the best performance since October. Ether grew by 57%, which was the strongest monthly increase since January 2021.

The rally has kept pace with the rise of riskier assets such as stocks as investors bet that economic weakness could deter the Fed from aggressively tightening monetary policy.

Bitcoin's 40-day correlation with the tech-focused Nasdaq is now 0.90 - up from 0.41 in January, where 1 means their prices are moving in perfect alignment.

The leading cryptocurrency has been consistently positively correlated with Nasdaq since the end of November, unlike in previous years when it usually turned negative, which meant that they were moving in opposite directions.

Itai Avneri, deputy CEO of the INX cryptocurrency trading platform, called the July convergence "good news."

"This means that institutional investors are looking at bitcoin like any other asset," he said. "When the market changes — and it will change — these institutions will come back and invest in cryptocurrency."

The profit was not limited to bitcoin, as the value of the global cryptocurrency market again exceeded $ 1.15 trillion last month, adding more than $ 255 billion since the end of June, CoinGecko data showed.

According to research company CryptoCompare, assets under management of products for investing in digital assets increased by 16.9% to $ 25.9 billion in July, reversing the June decline of 36.8%.