Strong Simultaneous Bitcoin and Stocks Rally Sparks Correlation Narrative

Following the week that both Bitcoin and traditional investors would like to forget, a semblance of normality has returned to stocks. Today, Bitcoin appears to have halted the slide of the past seven days and is looking to retest the $9,000 level.

Bitcoin daily chart with 50-day & 200-day MA. (Source: tradingview.com)

But the ongoing threat posed by the coronavirus looks to be accelerating in countries outside of China. CNN reported six new deaths in Washington state, along with a surge in diagnosed cases across the US.

As well as that, the UK is on high alert following the confirmation of four new cases. The patients had recently returned from Italy – the epicenter of the largest outbreak in Europe. And much like the US, the UK is experiencing a spike in confirmed cases.

Taking this into account, the question on everyone’s mind is, is Bitcoin poised for further drops?

Chart of confirmed coronavirus cases in the UK. (Source: bbc.co.uk)

The Correlated Asset Debate Continues

A week on…