Is there a correlation between Bitcoin and traditional markets? The long-awaited answer

Analysts argue on this topic for several years now. And they have enough soil for this — in 2017, the stock market grew along with a new price record of the S&P 500 index. After a few months of classical markets fell, and with them almost at the same time, went to the bottom of the Bitcoin.

As Bitcoin depends on stock

Traditional and new assets can all move in the same direction for a short period of time. This is due to the fact that investors always follow a common (bearish or bullish) sentiment of the market. Sure BitBull Capital CEO Joe Di Pasquale.

Investors enter the market when they have optimistic forecasts. The market does not have to be traditional or cryptocurrency. When the mood change in the opposite direction, they leave the auction assets.

In a long period of time, analysts found no dependency between stock and crypt. To such conclusion came in Blockforce Capital. Recently, the experts of this company have compared the price movement of Bitcoin and the S&P 500 from January 2015 to October 2018. Blockforce CEO Eric Ervin said that between coin and traditional market there is no communication.

Historically, the correlation between the S&P 500 and Bitcoin was always negligible. And although this year it has increased, we still do not see the connection between these two assets. However, the lack of correlation does not mean that the fall of one of the markets the second will be sure to grow.

Image source — Bitcoinist

Managing Director, Digital Capital Management Tim Enneking believes that after the entrance of institutional investors in the stock market digital assets will become more like securities.

One of the most attractive factors for investing in cryptocurrency has always been their complete independence from Fiat. The growth of correlation between them may make Bitcoin less interesting for large investors.

Information prepared in NewsBTC.


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