A Weaker US Dollar Prediction Offsets Bitcoin Bearish Bias for Q3/2020

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Bitcoin eyes a significant plunge entering further into the third quarter as S&P 500 stocks unveil a 45 percent drop in quarterly profits. The correlation between the cryptocurrency and the US benchmark index last week hit a record high. Nevertheless, both the risk-on markets may limit their downside move on a weakening US dollar outlook. Analysts have warned that the greenback could plunge in the coming months. Bitcoin’s short-term outlook for the third quarter is fundamentally bearish due to its over-reliance on the S&P 500. The two benchmarks have tailed each others’ moves since they dropped in tandem during the March 2020’s global market rout. Especially in recent weeks, the correlation between them has grown to record levels, according to data collected by Skew, a market analysis platform. Bitcoin-S&P 500 1-month realized correlation hit record highs. Source: Skew The S&P 500 is now sitting atop 0.94 percent year-to-date losses following…

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