Despite Friday's overall weakness, the three major indexes and Bitcoin were able to post weekly gains. The DOW gained +0.4% for the week while the S&P 500 advanced +1.3% for its fourth positive week out of the last five. The tech-heavy NASDAQ outperformed the other two indexes with a gain of +3.1% for the week.
On a daily level, the DOW fell 124.32 points or -0.4%, to 30,179.05. The S&P 500 dipped -0.4% or 13.07 points, to 3,709.41, and the NASDAQ lost -0.1% or 9.11 points, to 12,755.64. All three indexes touched new intra-day highs earlier in trading after closing at records in the previous session. Those records are 30,343.59, 3,726.70 and 12,809.60 respectively.
However, Bitcoin was the big winner for the week, gaining roughly +22% and setting an all-time high of 23,777 on the back of rising volume. Where did that increase in volume come from? The bitcoin "whales," of course. Often times, these large rallies are fueled by large investors with an ability to influence market trends. Sound familiar?
It's becoming more clear that high-net-worth investors and large trading institutions are increasingly considering bitcoin a hedge against inflation, and for that fact, it looks like this rally can be sustained for the long run.
As of Thursday, the population of whale entities – clusters of addresses held by a single network participant holding at least 1,000 BTC – was 2,001, the highest on record, according to data source Glassnode. The previous lifetime high of 1,992 was recorded on Dec. 4. The number of whale entities has gone up by 16% this year, while bitcoin's price has rallied by 220%.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 3,594.39
- Dow (INDEX:DJI): 29,463.64
- NASDAQ (NASDAQ:COMP): 12,027.16
- U.S. Dollar (ICE:DX): 91.94
- Gold (NYMEX:GC.G21): 1,865.90
- Crude Oil (NYMEX:CL.G21): 48.00
- Bitcoin (BITCOIN:BITSTAMPUSD): 17,569.58