The Dow Jones Industrial Average reached the 47,000 point mark for the first time in history on Tuesday, supported by strong quarterly figures from American heavyweights such as Coca-Cola, 3M and General Motors. The index ultimately closed slightly lower, but recorded a new record close at 46,924 points.
That is a good signal for the Bitcoin price, because a rising Dow Jones usually signals that investors are hungry for risk.
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Strong business results drive the market
The breakthrough marks an important moment in the three-year bull market in US equities and shows that risk appetite among investors is still high, a development that generally also has a positive effect on Bitcoin and other risk investments.
The start of the third quarter earnings season is going better than expected. Year to date, 86% of companies in the S&P 500 have exceeded their earnings estimates, according to data from FactSet.
Companies like Coca-Cola, 3M and GM gave the Dow a powerful boost with better-than-expected results:
- 3M rose 7.7 percent to a four-year high.
- GM jumped 15 percent after a big increase in profit expectations and strong SUV sales.
- Coca-Cola also delivered figures that were above analyst estimates.
According to Scott Helfstein, head of investment strategy at Global
The S&P 500 closed almost flat, while the Nasdaq fell slightly by 0.2%. The 10-year yield fell to 3.96%, the lowest level since October 2024, further boosting confidence in the stock market.
Gold drops, risk appetite rises
At the same time, precious metals suffered a sharp decline. Gold prices plunged 5.7%, the biggest drop since 2013, while silver lost 7.2%.
According to analysts, this movement can largely be explained by increasing optimism in the financial markets. The United States and Australia signed a new trade agreement on rare earths on Monday, fueling hopes that a broader agreement with China is also within reach.
The sell-off in gold shows that investors currently have less need for safe havens, a classic sign of rising risk-on mentality in the market.
What this means for Bitcoin
A record high for the Dow Jones is more than symbolic: it reflects that investors have confidence in the economic prospects and are willing to take more risk.
Historically, Bitcoin often benefits from such an environment. As stocks reach new highs, more capital flows into alternative and riskier investments, including digital assets.
In addition, falling bond yields and gold’s loss of appeal increase Bitcoin’s relative attractiveness as a store of value. With gold recently losing 5 percent, Bitcoin is once again gaining ground as a “digital alternative” for investors looking for protection against inflation or monetary policy.
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Source: https://newsbit.nl/positief-signaal-voor-bitcoin-dow-jones-bereikt-record-dankzij-sterke-bedrijfswinsten/
