Sign Up on MEXC
Bitcoin’s correlation with the stock markets has been a worrying signal for the investors as economists call out an extended U-shaped recovery in stocks.
Nevertheless, the trend seems to have broken away lately as the stock market gains seem to have capped below $3,000, while Bitcoin has continued to trade above $9000. The price of Bitcoin [BTC] at 4: 15 hours UTC on 7th May 2020 is $9301. Mati Greenspan, the financial and crypto analyst, tweeted,
#Bitcoin (orange) has been surging while US stocks (blue) have been lagging for the last week.
Volatility Vs. Emerging Currencies
Moreover, the economic frenzy brought about due to coronavirus and the consequent oil market crash, is also starting to favor the Bitcoin ‘safe-haven’ rhetoric. In comparison with oil and the emerging currency markets, Bitcoin has been stabler. Leading on-chain analyst, Willy Woo, tweeted,
Bitcoin is already the size of an emerging country. Its marketcap at $170b is already that of the 53rd country by GDP.
As recently reported on CoinGape, many of the oil-exporting and underdeveloped middle-eastern and Latin American countries have been battling severe economic downfall with hyperinflation.
In the past, the volatility in the emerging currency markets have been comparable to Bitcoin twice. Tyler D. Coates, a prominent derivatives trader, tweeted,
Looks like this has happened twice since 2012. Last two times led to a selloff and then a bottom. This would line up rather nicely with a post #halving dump and then moon.
Furthermore, it can also be observed that the volatility increased in Bitcoin after the confluence in the last two times. With halving due within a week, the price action can continue to be volatile in the short term.
On Emerging Cryptocurrencies
Nevertheless, apart from Bitcoin [BTC], the other cryptocurrencies (excluding a select few) have been under-performing as well. The risk component in many of these cryptocurrency is far higher to invest during a recession.
Currently, BTC dominance over the cryptocurrency is facing resistance around the 68% mark, a break-out could target 70%. The momentum has been favoring the rise as well.
Which region will you see Bitcoin adoption earlier: developed countries or emerging nations? Please share your views with us.
- Michael Saylor Credits Bitcoin for Strategy’s Outperformance Over ‘Mag 7’ Stocks
- XRP Overtakes Shopify, Verizon, Citigroup in Market Value as Price Eyes $6
- Altcoin Season Index Hits New High As ETH, SOL, DOGE, and XRP Rally
- ‘Huge Breakthrough,’ Peter Brandt Says as Dogecoin Reclaims $0.30 Ahead ETF Launch
- Bitcoin Bull Cycle Could Extend To 2026, Arthur Hayes Predicts
- Bitcoin Price Prediction: Q4 Rally Looms as ETF Inflows Hit $642M—Analyst eyes $150K
- Pepe Coin Price Prediction as the Token Jumps Nearly 20% – Will Whale Accumulation Take it to $0.00003?
- Pi Coin Price Prediction As Adam & Eve Pattern Signals Breakout Rally To $0.45 Ahead
- HBAR Price Prediction Amid DTCC Listing and Archax Expansion — Is $0.50 Next?
- Ethereum Price Eyes a 40% Surge as Morgan Stanley Shifts Fed Cuts Forecast
