π₯ Bitcoin and Stocks are not correlated anymore? Look at this chart!
Hello!
We all have heard that Bitcoin is correlated to the Stock Market, and when it takes a hit, the price of Bitcoin also suffers. The same happen when there is euphoria and greed, both indicators rise in price.
But today I stopped in front of this piece of content today while browsing my twitter feed.
It shows the Bitcoin USD price variation in % and the Stock Market price variation also in %. I think that in the chart it is shown the S&P 500.
This las Bitcoin spike, has not been followed "yet" by the stock market. The altcoins also didn't follow this trend at all. Some of them are moving in the other direction, and the majority remain stable or are slowly declining.
Is Bitcoin correlated to the Stock Market?
Well, if I had to answer this question shortly I would say YES. Even this chart doesn't indicate it, larger market movements use to accept both kind of assets.
We had seen it specially this 2020, when the COVID-19 recession hit the markets, Bitcoin plummeted to really low levels.
But there is something unpredictable about Bitcoin that makes it really special. We can have this HUGE pumps at any time. This pumps can be overextended and you will never be prepared enough for them.
I like to see the markets pumping at the same time that the "crypto sentiment" is also turning from bearish to bullish. This long 3-year winter is over? I don't know, but what I am sure is that it will not last 3 more years. I expect the markets to retrace a bit and take some fresh energy for the next ATH.
It will surprise me a lot if we brake 20,000$ at the first attempt. But with crypto you never know!
Stay safe out there! π
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