Bitcoin gains above 5.5% ahead of key trading week

While cryptocurrencies, like Bitcoin, saw a slight increase on Friday, they continued to trade at relatively low levels ahead of the weekend. A significant event for the stock market that may also affect cryptocurrencies will unfold next week.

After swinging back and forth in recent days between the psychologically significant $40,000 level, the price of Bitcoin has increased by 1% to $40,500 over the last 24 hours. Bitcoin is trading at $42144 at the time of writing, up 5.58%.

Following the historic approval of spot Bitcoin exchange-traded funds (ETFs), which originally drove prices to the highest level since early 2022 before a “sell the news” dynamic set in, the largest cryptocurrency has struggled to hold onto gains earned earlier this month.

Volatility in the cryptocurrency market remains subdued. Bitcoin, for some time earlier remained around $40,000. The drop in equity indices over the past 24 hours hasn’t been too much of a concern for cryptocurrency investors so far.

There is evidence that Bitcoin is becoming increasingly correlated with the stock market, the Dow Jones Industrial Average, and the S&P 500 indices as the ETF craze wanes.

The US central bank, Fed, is expected to make a significant monetary policy decision next week, which might influence investors’ expectations for the direction of interest rates. Interest rates are a macroeconomic trend that affects all risk-sensitive assets, including tokens.