Recently, Bitcoin has become more corelated with the stock market than ever. This makes sense, since more and more people know about it. But there are still noticible fluctuations here and there.
So, I noticed that most of the time, when Bitcoin creates some significant local high, this also reflects to the stockmarket (usually done so on a high corelation).
But the interesting thing is that when Bitcoin bottoms, the correction on the SPY is yet to arrive. Mark that after most local tops, the corelatoin diverges a lot because Bitcoin is able to react much faster.
(it is traded 24/7)
Not only is Bitcoin able to widthstand market corrections (except maybe some that are affected by global events), but it thrives in this environment.
Will we see some heavy divergence this time?
My guess that it will not be such great as in the past, but we could still see some big moves in the opposite dirrections soon. According to this data, Bitcoin should recover much quicker, while the stocks struggle or possibly consolidate for a while.
So, I noticed that most of the time, when Bitcoin creates some significant local high, this also reflects to the stockmarket (usually done so on a high corelation).
But the interesting thing is that when Bitcoin bottoms, the correction on the SPY is yet to arrive. Mark that after most local tops, the corelatoin diverges a lot because Bitcoin is able to react much faster.
(it is traded 24/7)
Not only is Bitcoin able to widthstand market corrections (except maybe some that are affected by global events), but it thrives in this environment.
Will we see some heavy divergence this time?
My guess that it will not be such great as in the past, but we could still see some big moves in the opposite dirrections soon. According to this data, Bitcoin should recover much quicker, while the stocks struggle or possibly consolidate for a while.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.