While Bitcoin has been consolidating between $9,000 and $10,000, it became obvious that both its buyers and sellers have been unable to squash either of these levels leaving investors grappling for clarity. BTC earlier was seen to have underlying strength seem to crumble into an illusion of weakness as BTC trading volumes dwindled.
Interestingly, equities have concurrently being bound within sideways trading as uncertainty met with lack of investors clarity regarding the period the economy will bounce back to its pre-coronavirus stance. In the last few months, it is becoming glaring the coupling between Bitcoin, the firm guide for the cryptomarket and the stocks market, U.S equities in particular.
Over the last few weeks, this correlation between BTC and the stocks market has gotten amazingly stronger spurring up the notion that crypto investors are following the trail of their counterparts in the traditional markets. This supposed “marriage” is bringing up assumptions that BTC will monitor closely the equity market’s trends.
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Bitcoin (BTC) Near Term Trend May Be Affected by Increased Coupling With S&P 500 Leading Up to a Decline
Another analyst expects a 25% drop in BTC recent prices to trade around $7,000 while a prominent crypto analyst, Tone Vays expects Bitcoin’s consolidation to persist for months.
However, be that as it may, if the economic situation improves and equities market bounce back, this correlation between BTC and stocks market may spur BTC into resuming an uptrend alongside the stocks market.