At a Glance
Bitcoin climbed more than 12% over two days to reclaim the $70,000 level on the 20th (local time). The same day, all three major New York indexes closed lower while international oil prices jumped more than 2%. The risk-asset rally fueled by hopes for regulatory easing showed starkly different staying power in stocks versus crypto.
Why It Matters
The market dubbed this rebound the "Bessent put," after both stocks and cryptocurrencies jumped in tandem following market-friendly comments from U.S. Treasury Secretary Scott Bessent. Yet the nickname proved short-lived — the stock market's rebound didn't even last a full day. The proof: all three major New York indexes reversed lower on the 20th.
Bitcoin told a different story. It held above $70,000 even as the indexes fell, with its two-day cumulative gain topping 12%. The fact that two markets reacting to the same catalyst diverged within a single day can be read as a signal that the buyers behind this crypto rally are not the same investors driving the stock market. Such decoupling typically emerges when institutional money flowing in through spot ETFs, or long-term holdings moving off exchanges, provide the underlying support — supply-demand (order flow) that isn't easily shaken by a one-day pullback in a stock index.
Key Issues
- The shelf life of the "Bessent put" narrative — the rally sparked by the Treasury Secretary's comments evaporated in the stock market within a single day.
- Bitcoin and Wall Street decoupled rather than moving together despite reacting to the same catalyst.
- International oil prices rising more than 2% the same day suggests a separate supply-demand (order flow) factor may have been at play, rather than broad liquidity expansion across risk assets.
- The $70,000 mark was a psychological resistance level, and whether bitcoin holds above it without a pullback is the next thing to watch.
Related Stocks and Sector Impact
- Woori Technology Investment — a stock (ticker) whose KOSDAQ share price tracks bitcoin prices, owing to its stake in a domestic crypto exchange.
- Galaxia Money Tree — its share price has historically been highly sensitive to bitcoin price swings because of its equity ties to Bithumb.
- WIZIT — a stock (ticker) grouped into the crypto theme stock category due to its history of holding stakes in a crypto exchange.
- Danal — indirectly benefits from rising crypto trading value through its crypto payment business.
- Coinbase — a U.S.-listed exchange whose fee revenue rises directly with trading value, making it a bellwether stock during periods of bitcoin volatility.
Investment Considerations
- Given that the "Bessent put" label itself lost credibility within a day, reading too much into a narrative built on a single policy comment carries risk.
- Whether bitcoin's decoupling reflects genuine institutional inflows or simply a slower reaction lag versus stocks will only become clear over additional trading sessions.
- If the rise in oil prices is interpreted as an inflation signal, rate-cut expectations could recede, which may put pullback pressure on risk assets broadly, including crypto.
- Domestic crypto theme stocks often move in line with bitcoin prices regardless of an exchange's actual earnings, so investors should check each stock's equity stake and revenue contribution individually.
Overall Outlook
In the optimistic scenario, current hopes for regulatory easing translate into actual policy, sustaining a structural inflow of institutional money. In that case, bitcoin's foothold above $70,000 could become a springboard for the next leg higher. In the pessimistic scenario, this rebound proves to be nothing more than a short-term reaction to the Treasury Secretary's comments, and crypto markets could still face a belated pullback, just as stocks did within a single day. Which path plays out will hinge on whether bitcoin re-couples with equities in subsequent trading sessions or continues to rally on its own.
Frequently Asked Questions
Why did bitcoin rise while Wall Street fell?
On the 20th (local time), all three major New York indexes closed lower, but bitcoin gained more than 12% over two days to break above $70,000. Despite reacting to the same hopes for regulatory easing, the crypto market may have been supported by a different type of buyer than the one driving stocks.
What does the "Bessent put" mean?
It refers to the phenomenon of risk assets rebounding after market-friendly remarks from U.S. Treasury Secretary Scott Bessent. In this instance, the effect didn't even last a full day in the stock market.
Is the rise in international oil prices related to the bitcoin rally?
International oil prices rose more than 2% on the 20th, but this isn't explained by the same catalyst as bitcoin's rise. Oil is an asset that reacts more to crude supply-demand (order flow) factors and doesn't always move in the same direction as a risk-asset rally.
This article is automatically summarized and analyzed based on the original news report. View original (Maeil Business Newspaper, Securities)
