• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Bitcoin

Strong Simultaneous Bitcoin and Stocks Rally Sparks Correlation Narrative

Samuel Wan by Samuel Wan
1 year ago
in Bitcoin
Reading Time: 3min read
Strong Simultaneous Bitcoin and Stocks Rally Sparks Correlation Narrative
Advertisement

Following the week that both Bitcoin and traditional investors would like to forget, a semblance of normality has returned to stocks. Today, Bitcoin appears to have halted the slide of the past seven days and is looking to retest the $9,000 level.

Bitcoin daily
Bitcoin daily chart with 50-day & 200-day MA. (Source: tradingview.com)

But the ongoing threat posed by the coronavirus looks to be accelerating in countries outside of China. CNN reported six new deaths in Washington state, along with a surge in diagnosed cases across the US.

As well as that, the UK is on high alert following the confirmation of four new cases. The patients had recently returned from Italy – the epicenter of the largest outbreak in Europe. And much like the US, the UK is experiencing a spike in confirmed cases.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Taking this into account, the question on everyone’s mind is, is Bitcoin poised for further drops?

Coronavirus cases
Chart of confirmed coronavirus cases in the UK. (Source: bbc.co.uk)

The Correlated Asset Debate Continues

A week on from the Dow dropping more than 1,000 points, the third biggest points drop in its history, evidence begins to mount that Bitcoin is a correlated asset, as it too suffered a torrid time.

The Dow started trading in May 1896.

Today was the third worst day ever.

But that is in terms of points. If you look at % loss, it is the 254th worst ever.

Still significant, but puts things in perspective. pic.twitter.com/RPxmk1Bbpa

— Ryan Detrick, CMT (@RyanDetrick) February 24, 2020

As such, the narrative that Bitcoin would thrive during times of economic turmoil took a major hit. Indeed, Andreas Antonopolous recently chimed in on the debate by saying a slowdown would likely see investors shun risky assets, such as Bitcoin, leading to a collapse in its price.

Moreover, Antonopolous took the opportunity to pan the attitude of maximalists, who took delight over the ensuing economic panic. Whereby he reminded everyone that cryptocurrency lacks the scale to serve the world under the conditions of a global meltdown.

With that said, analyst CryptoBullet charted both Bitcoin and the S&P500. He noted a high degree of correlation between the two. And reasoned that booming economies would exert a trickle-down effect on speculative assets. With the converse also being true, as evidenced by last week’s dip on the S&P500 coinciding with a downturn for Bitcoin as well.

“BTC is not a hedge! If you are wishing for an economic collapse and think your coins will pump, you are terribly wrong.”

Bitcoin & S&P500
Chart of Bitcoin and S&P500. (Source: tradingview.com)

Calm Following The Storm

And as we enter a tentative period following the panic of last week, based on the evidence above, Bitcoin investors would be praying for good news on the macroeconomic front.

Indeed, as markets fell last week, mainstream outlets were pushing a positive spin. During the midst of the panic, Wharton School professor, Jeremy Siegel took to CNBC to inject a sense of calm into proceedings by emphasizing the long term aspects of stock investing.

“over 90% of a stock’s value is its profits after one year, after the next twelve months. Which means even if profits are wiped out for one year, and we return to normal after one year, that’s our hope, over 90% of the vlaue of the stock should be maintained.”

Markets responded yesterday and stocks bounced back, with the Dow breaking records for its biggest-ever daily gain. Whether this is a dead-cat bounce remains to be seen.

Stocks bounce back in a big way from last week's #coronavirus #selloff . #DOW posts its BIGGEST single-day point gain EVER, rising 1,294 points. Percentage-wise, it doesn't even crack the top 20. pic.twitter.com/DOM9Px4bSf

— Eric Landskroner (@ericlandskroner) March 2, 2020

Where Now For Bitcoin?

However, for the week ahead, analyst, cryptoGats sees upward momentum for Bitcoin. His analysis also showed a correlation between Bitcoin and the Dow. But at the same time, he also sees Bitcoin trying to decouple, as evidenced by stable BTC prices after the major indices had closed for business.

“We had a 74 billion drop in crypto between Monday and Friday, finding stabilization only after the markets had closed. This tells you that without the jitters of a major indices wants to continue on its own path, which is to move up.”

Bitcoin TA
Bitcoin daily chart with technical analysis. (Source: tradingview.com)

His analysis highlights BTC climbing back above the 200-day moving average. And if Bitcoin can maintain this position today, an eventual close on the 50-day moving average is on the cards. With this in mind, the push towards retesting the $10k level is a real possibility.

Tags: bitcoinmarket correlationTraditional Finance
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Samuel Wan

Samuel Wan

Samuel Wan is passionate about different cultures and eating good food. He has years of experience working in business and finance — a burgeoning interest in Bitcoin and cryptocurrencies since 2017. UK based.

Related Posts

Bitcoin BTC

Why Bitcoin below $60K could be a great buying opportunity

14 hours ago
Bitcoin BTC BTCUSD

How Bitcoin back above $60,000 could create a powerful upside move

2 days ago
bitcoin real estate mogul

LA Real Estate Mogul Buys Bitcoin, Accepts BTC For Rent

2 days ago
Bitcoin BTC

Why Bitcoin could favor USD dominance over Digital Yuan

3 days ago
Radio Host Dave Ramsey Warns Bitcoin Investor of His “Vegas Problems”

Radio Host Dave Ramsey Warns Bitcoin Investor of His “Vegas Problems”

3 days ago
Bitcoin Selling Pressure is Declining, Hints Key Glassnode Indicator

Bitcoin Selling Pressure is Declining, Hints Key Glassnode Indicator

3 days ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
Bybit

Bybit

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Top ICOs

Student Coin

Student Coin

Review · Visit

Token sale

Holdefi

Holdefi

Review · Visit

Press Releases

Blockchain Goes Mainstream With Rowan Energy

April 12, 2021

Two Leading Russian Media and PR Agencies United Into One Full Cycle Advertising Agency

April 9, 2021

Southampton FC Extend Partnership Deal with Blockchain Leader the Coingaming Group

April 9, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Invest BTC
  • Join STC ICO

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.