RATE Group | Bitcoin Trades Like the S&P 500, and is Testing Resistance
87460
post-template-default,single,single-post,postid-87460,single-format-standard,ajax_fade,page_not_loaded,,qode_grid_1300,side_area_uncovered_from_content,footer_responsive_adv,qode-content-sidebar-responsive,qode-child-theme-ver-1.0.0,qode-theme-ver-13.3,qode-theme-bridge,wpb-js-composer js-comp-ver-7.9,vc_responsive
 

Bitcoin Trades Like the S&P 500, and is Testing Resistance

05 May Bitcoin Trades Like the S&P 500, and is Testing Resistance

Posted at 02:37h in Bitcoin News by

If you pay attention to the trends taking place on the Weekly Bitcoin chart, you’ll notice that it has reacted to the global market Covid-19 trends almost exclusively since the beginning of 2020.  After the end of 2019, the US stock market rallied on Q4: 2019 data and so did Bitcoin.  The US Stock market peaked near February 20 and began a deeper selloff on February 25 – Bitcoin followed this pattern as well.  When the US Fed initiated the stimulus on March 23, Bitcoin prices had already started to bottom in anticipation of the Fed stimulus and really began to rally after the Fed began intervening.

Bitcoin VS S&P 500 Daily Chart Comparison

This is a bit unusual for Bitcoin, which in the past didn’t correlate to the US stock market trends all that well.  What changed?  We believe the sudden correlation of Bitcoin to the US Stock Market trends are related to investor psychology and the perceived efforts of the Central Banks in supporting the global economy.

We find it…

Source link

Tags:
, , , , ,