Digital-asset traders are turning to the stock market again to see whether the worst has passed in the US stock market. This comes after a harrowing period of turmoil and existential anxiety.
Both Bitcoin, which has gained 15% in the preceding month, and the stock market as a whole, have seen gains in the last several weeks.
After dipping somewhat in June, the 90-day correlation coefficient between Bitcoin and the S& currently sits at about 0.65, among the many highest such values in Bloomberg knowledge dating back to 2010.
#bitcoin comfortably above realized price. Looks like 2012, end-2015 and 2019. pic.twitter.com/R0WEgRTc6H
— PlanB (@100trillionUSD) August 6, 2022
The two coefficients are: one, which is Coefficient 1, indicates belongings are shifting in Lockstep, and the other, which is Coefficient 1, indicates the opposite.
According to Bloomberg Intelligence analyst Mike McGlone, cryptocurrencies are primed to gain “if stocks have bottomed”. Few factors in markets may be as powerful as those of a rapidly falling stock market in the first half. ” There is an ebbing tide, and cryptos are part of it.”
Bitcoin's Potential as a Global Digital Collateral ⚡
Bloomberg Analyst Mike McGlone says Bitcoin is trading at a discount and added that the asset could become a global digital collateral#news #crypto $BTC pic.twitter.com/aOaYZv6mvb
— Litest (@LitestHQ) August 8, 2022
Throughout the year, both stocks and cryptocurrencies have been moving in the same direction. In the backdrop, the US Federal Reserve is hawkish and determined to bring down inflation that has been four decades high, which has been a source of volatility for all types of assets in 2022.
Even so, it’s impossible to say for sure if stocks and cryptos have hit their bottoms since bottoms are solely discernible after the very fact.