Bitcoin stock market correlation
Sep 15, · Bitcoin is popular among investors as a hedge to inflation and tumbling stock prices due to its historically low correlation to equities markets. However, the digital asset is starting to display some uncanny correlation to stocks. BTC and the crypto space as a whole started experiencing losses since the Sep. 3 stock markets meltdown. Oct 03, · That’s because the correlation between Bitcoin and the benchmark S&P stock index remains positive, meaning that its price movements are consistent with those in equity markets. In addition, Bitcoin’s day Relative Strength Index (RSI) reading clocks in . Oct 24, · One analytics firm noted that Bitcoin’s correlation with the stock market now sits at zero, which is a bull-favoring development. “With Bitcoin’s +% price surge this past week, its correlation to the #SP has dropped back to 0 for the first time since May on our day rolling average model.
Bitcoin stock market correlationBitcoin’s Stock Market Correlation Just Hit Zero for the First Time Since May
As long as this trend persists throughout the coming few weeks as the election nears, it could mark the start of a new era in which Bitcoin is fully decoupled from equities.
Share Tweet Send Share. Prev Next. For updates and exclusive offers enter your email below. Cole Petersen 36 mins ago. That narrative, first forged during the financial crisis from which Bitcoin was born, is now being put to the test. Like most all major assets, Bitcoin is clinging to the chart movements of everything around it. Currently, on a scale of 1. This included hard assets like gold, and especially Bitcoin, which has fewer trading restrictions and can be easier to liquidate than its predecessor.
If it drops lower, it will encroach on the lows it hit in the beginning of and In its most extreme use case, Bitcoin is an insurance policy against the collapse of financial systems, economies, and political regimes.
The current crisis only began one month ago. After all, gold fell sharply at the onset of the crisis but broke away from equities shortly after. Will digital gold chart the same path? The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.