BTC’s correlation with U.S. equities threatens to push the first cryptocurrency below $9,000. The view was voiced by Ronnie Moas, founder of Standpoint Research.
$BTC #BTC #bitcoin has been tracking the #USA #stockmarket very closely during the recent stock market collapse >>> I feel the stock market remains over-valued by 10%-20% >>> If this correlation continues … you may very well see a break below $9,000
— Ronnie Moas | Nomad | Stocks | BTC | Charity (@RonnieMoas) September 23, 2020
According to him, the price could fall below $9,000 if the stock market falls another 10-20%.
From the start of September, Bitcoin’s price has fallen almost in sync with the S&P 500 and Dow Jones. Data: Messari.
A participant in the Bitcoin community, Michael Hagelström, does not rule out that traditional-market participants are selling cryptocurrency to cover losses on margin positions. This, he says, explains the fairly tight correlation of BTC with global indices.
Main reason I see for that correlation is that there is too much leveraged positions this days. When markets crashes, credit is contracted and this includes btc leverage. Also BTC is a liquid asset that can easily be sold to cover other less liquid positions.
— Martin Hagelstrom (@mhagelstrom) September 23, 2020
Earlier, expressed confidence that gold and Bitcoin could hold up in the face of a possible stock-market decline.
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