![[Bitop Review] Dow Hits Record High While Crypto Bleeds: Bitcoin Tanks 6,000 Points to 108K](/api/image-proxy?url=https%3A%2F%2Facademy-public.coinmarketcap.com%2Fsrd-optimized-uploads%2F66074b288b4447b3acf7337c1e58e68e.jpg)
The Dow Jones Industrial Average reached a record high on Tuesday, buoyed by robust earnings reports from major corporations like Coca-Cola and 3M. This broader market rally is occurring even as the cryptocurrency market experienced a notable downturn, with Bitcoin falling significantly.
Corporate Earnings Support Broader Market Rally
Data from FactSet indicates that a significant majority of S&P 500 companies that have reported their earnings so far have surpassed expectations. The artificial intelligence sector continues to show strength, and large technology companies are anticipated to drive substantial profits. Specifically, the "Magnificent Seven" group of companies is projected to achieve a 14.9% year-over-year profit increase. In contrast, the remaining 493 companies within the index are forecast to have a profit growth rate of 6.7%.
Tesla is scheduled to release its earnings report on Wednesday. The strong performance observed at the beginning of the earnings season appears to be a key factor supporting the current broad market rally, particularly in the absence of new economic data releases due to the government shutdown.
Market participants are anticipating the Federal Reserve to implement another 25 basis point rate cut at its late-October meeting, which is contributing to positive market sentiment. The upcoming release of the Consumer Price Index (CPI) on Friday is expected to offer crucial insights into inflation trends, potentially influencing the Federal Reserve's future monetary policy decisions.
Ethereum Foundation Transfers Large ETH Holdings, Bitcoin Reverses Gains
The cryptocurrency market experienced a 2.04% decline over the past 24 hours. While market sentiment has shown slight recovery, the Fear & Greed Index remains in the "fear" zone at 33. Bitcoin's dominance has held at a recent high of 59.1%, indicating that altcoins are continuing to underperform.
Bitcoin began a sharp recovery after 10 PM last night, reaching a peak of $114,000 around 00:30 today (the 22nd). This marked a high not seen in nearly a week. However, Bitcoin subsequently experienced an eight-hour decline, dropping below $108,000 at one point before the deadline, a $6,000 fall that completely erased the gains from the previous night.
Net outflows from Ethereum and Bitcoin spot Exchange Traded Funds (ETFs) have decreased. Spot gold prices also saw a rapid retreat from their recent highs, falling below $4,100. Tuesday's drop of over 5.3% represents the largest single-day decline for gold in more than five years. As traders take profits and sell gold, there is a potential for funds to flow into riskier assets such as Bitcoin.
The Ethereum Foundation transferred 160,000 ETH, valued at approximately $654 million, to a wallet that Arkham identified as having been previously used for sales. Hsiao-Wei Wang, Co-Executive Director of the Ethereum Foundation (EF), clarified on social media that this transaction is part of a scheduled wallet migration. The price of ETH was not significantly impacted by this event.