Bitcoin Bounces with Stocks as S&P 500 Hits New All-Time High

Bitcoin rebounded from its Monday dip below $62K, reaching $64,300 by Wednesday morning. The S&P 500's fresh all-time high contributed to this bounce, a phenomenon where equities' performance often influences crypto prices.

The correlation between risk assets and cryptocurrencies isn't always reliable, but it showed up strongly this week. When stocks are setting records, traders tend to increase their appetite for digital assets. Conversely, when they're not performing well, the opposite happens.

Lower-cap tokens like Uniswap's UNI token saw significant gains on Tuesday, jumping 10% after staying relatively flat over the past seven days. The DeFi sector as a whole was the top performer in this timeframe, but its weekly change suggests that these recent gains might be more of a recovery than a breakout.

The Fear and Greed Index still reads 27, placing it firmly in 'Fear' territory. This is despite Bitcoin's price increase, which may indicate that investors are feeling anxious about the market's prospects.