Previously co-founder of Fundstrat’s Tom Lee said that the bearish trend of Bitcoin officially ended. After Pampa cryptocurrencies in the beginning of this month, its popularity has increased dramatically, and the search requests in the my Google Trends about BTC surpassed the number of even Elon musk.
One of the reasons for the formation of the uptrend could serve as the strong interest of institutional investors. According to Lee, the big players even in traditional markets starting to get interested in Bitcoin and are trying to allocate part of their portfolio into digital assets.
The correlation between Bitcoin and S&P 500
Between cryptocurrencies and classic assets to investors there are some similarities. For example, the price movement of BTC suspiciously exactly the same as the waves of growth of the S&P 500 index.
Now the correlation between these two trading instruments is at a fairly low level — minus 3.2 percent. But with gold, Bitcoin binds a lot more factors here, the correlation level has reached 12.6 per cent. Tweet Whether attached several graphs with dependencies between BTC and the most popular traditional assets.
According to the analyst, a negative correlation between S&P500 and Bitcoin may become a precondition for the imminent arrival of institutional investors in the stock market. Even in periods of low volatility digital assets bring much more revenue than traditional assets. Moreover, the big players were buying up BTC to thoroughly prepare for the primary wave bullrun.
1/ Risk markets globally have rallied YTD big time and this is a tailwind for #bitcoin $BTC. As noted previously, S&P 500 YTD is 2.5 std dev = ~ $14,000 for BTC
It’s curious that Bitcoin is now negative correlation to equities (next tweet)
From @fundstrat_ken latest piece https://t.co/mgolqFqTbv
— Thomas Lee (@fundstrat) April 12, 2019
However, even investors-lovers can become a driving force towards new heights. Recently, the index of fear of Bitcoin went down in the red zone, that can be a sure sign of the imminent price rise of cryptocurrency.
Tonight, Bitcoin is trading at $ 5114. For the past day coin rose 0.2 percent. About the latest updates of the market situation you will always know in our cryptodata.
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