Stock Correlation Risks Crashing Bitcoin by 25-35%, Asserts Researcher

klxS9zFi 980x580

A growing positive correlation between Bitcoin and stocks could spell trouble for the former, according to Vlad Antonov of Santiment, a data analysis service. In a note published Wednesday, the researcher said that he expects Bitcoin to fall drastically should the stock market maintain its influence over it. He recalled recent cases wherein both Bitcoin and the S&P 500 rallied in sync against some of the most market-shaking events, including the recent successful COVID-19 vaccine trials and the US election. Bitcoin-S&P 500 correlation. Source: BTCUSD on Just Bitcoin rallied too faster than its correlated peers, eking out 71.5 percent gains so far into the fourth quarter. The S&P 500, on the other hand, added only 7.32 percent in profits in the same period. Bitcoin DAA-Price Divergence Mr. Antonov noted that euphoria for Bitcoin was decent across social media. Buying sentiment in the retail market surged after high-profile firms and…

Read the original article here