Co-founder of Fundstrat Global Advisors Tom Lee found another interesting feature in the pricing of Bitcoin. It turns out schedule cost cryptocurrency is moving in tandem with indicators stock index S&P 500. In other words, the crypt depends on the situation in the traditional markets and will not become a “safe asset” for investment in times of potential financial crisis.
This morning Bitcoin trading at 7937 dollars. For the past day, the price of bitcoin has fallen by 1.7 percent, while its share in total market capitalization dropped to 66.7 percent.
What actually depends on Bitcoin?
During his interview with news portal The Block Li pointed out that his views do not coincide with the opinion of the majority of cryptoendoliths. The hypothesis that Bitcoin supposedly is a good investment during the financial crisis, has no substantial evidence.
If Bitcoin was a good option for hedging [that is, reducing the risk of loss of profits — approx. editor] against the bad economic situation, he would have shown the best profitability in those periods of time when the S&P 500 would show the worst results. However, for all the years since the invention of cryptocurrencies, its average profitability in the S&P 500 was minus 19 percent.
It turns out, is to keep an eye on the situation in the stock market. As soon as the S&P 500 rising 15 percent a year, Bitcoin is gaining value by at least 1,800 percent.
The best year of Bitcoin coincide with high profitability on the S&P 500.
And yet now graph the total capitalization of kriptonyte slowly approaching the formation of the “cross of death”, which is considered a sure sign of the beginning of the next bearish trend. At the same time experts of the traditional sector predict that in the traditional economy is also coming crisis. Perhaps these events have already connected?
His opinion about the relation of the Bitcoin exchange rate and stock index you can share in our cryptodata millionaires. There and discuss the situation.
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