Relationship between Bitcoin Price and Stocks Markets

July

11

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Bitcoin’s interaction with the S&P 500 has gone to all-time-high, what does it mean for Bitcoin price value? Its price value has shown record-high levels of interaction with traditional stocks markets. On July 9, this relationship between the S&P 500 and Bitcoin goes beyond the high level all the time.

Collected Data from Skew reveals that the one-year realized interaction on July 9 Thursday reached to 0.38, while this came after the metric had gone new highs in the current week.

The relationship with traditional stocks markets has been recently increasing with a steady pace that reaches consecutive new all-time highs in the current one-year. Additionally, the Data of Skew also presents that the last one month figure also goes to its all-time up of 0.78 on Wednesday.

Therefore, the Bitcoin has been revealing a growing relationship with the traditional stock market. Moreover, the same is not said for gold. It also goes up to 1,800 USD to set a fresh high that has not been seen since 2011.

According to the report of the Kraken research department, the relationship of Bitcoin with a precious metal showdown trading. So, the Bitcoin one-month rolling relationship also touches a four-month low of -0.49, which is far below the average level of 0.24 in the current year.

This interaction between the traditional stock market and Bitcoin has been grown up during the corona-pandemic outbreak and the March-12 crash to 3,750 dollars.

The current Coin-telegraph research report recommends that this trend may end after the pandemic, but it is not going to happen. It is probably because of the continued economic recession of COVID-19 pandemic.

Many of the experts have recommended that Bitcoin’s interaction to traditional stock markets may signal that Bitcoin is flattering, represented an extensive range of traditionally organize portfolios.  So it shows that it is a sign that the changes continue to happen.

The Bitcoin price value shows that it has been flattened, with the halving and all the hype surrounding since a long time.

The digital asset outstretches to a record low flightiness, with the 10-day realized volatility extending to the 0.2 marks, which is not seen since2018 November. With the alongside reducing trading volumes, the Bitcoin’s decreasing volatility is also happening.

While the current data predicts that the volume for BTC-USD and the BTC-USDT trading pairs fell by 56 per cent and 44 per cent in June 2020, the price value goes on to find resistance at the 9,300 dollars level, the change of an abrupt downside correction also keeping to goes high.

That’s why the investors are looking 9,500USD as the short-term level Bitcoin price value require to shatter. So there is a risk that the price may be drop to the level of 8,000 dollars. The iron relationship with the equities, low volatility, and a dwindling volume, as well as a decreasing interaction with the gold all, shows to bring a despairing outlook to Bitcoin price value. And particularly some other haven assets are doing their best.

About the author, Awais Rasheed

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