Cryptocurrency

Latest data: Bitcoin correlation with stock market drops, But a currency in a Crisis?

There is no question that the year 2020 is a volatile year for Bitcoin, because of the relatively small and immature crypto-market experienced in addition to virtually all traditional markets considerable turbulence.
In spite of this micro-volatility, and the recent downturn of Bitcoin remains both in the year 2020 than in the past decade the most important asset, as the strength of the Benchmark crypto currency strengthened in the face of global adversity their history as a safe haven more.

Bitcoin sees a strong micro – and Macro-Performance over the global markets

Since then, Bitcoin as well as the stock market experienced in mid-March, a surrender-like decline, have attracted the attention of the cops again, and beaten back, what has driven both BTC as well as the stock market is in the height.
This upturn was particularly strong for Bitcoin, which has doubled from its lows in the upper $ 3,000 range, the youngest allowed for upward trend, a slight increase compared to the opening price.
Of all of the major Assets Bitcoin is one of the best markets in the year 2020. While he was able to grow this year, only slightly, make a note of the Dow Jones and all of the other reference indices – is still 20 percent or more below their level of the beginning of 2020.
A similar Trend is shown when looking at its Macro Performance, such as a comparison of the log-log graph of Bitcoin with the S&P 500 and the aggregated real estate market shows.
Chart of the analysts Willy Woo

Safe-Haven-story emerges after a short period of invalidation again

Although the recent uptrend has Bitcoin reached, while the stock market, some showing signs of stabilization, it is important to note that it appears that the coupling with the world economy is showing some early signs of a rupture. The data analysis platform Skew illustrate that the realized correlation of Bitcoin has plummeted, with the S&P 500 compared to the version from March.

This has led to the story about the safe harbour, many analysts believed that it was declared in the last month invalid, it shows up again. Willy Woo – a prominent Analyst who focuses on On-Chain-data – noted that he is of the opinion that BTC has properties of a safe Harbor.

“I believe that BTC’s Safe-Haven properties? Yes. I think that this is due in part to the nuances of the production costs of Bitcoin, which created a price floor, and in part to the fact that the price has risen due to the S-curve of adaptation….“

The observation of the realized correlation of Bitcoin with the Benchmark stock indices in the coming weeks and months will provide a significant insight into his Status as a potential Safe-haven Asset.

About the author

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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