Until now, bitcoin has been a toy for stock exchange players and risk traders, and not a widespread investment or real currency. It is avoided by banks and forbidden by governments.
Nevertheless, it is still possible that a decrease in its value on Monday led to the beginning of a big sell-off in the market, as investors sold assets to compensate for crypto losses. There is an invisible link between the instability of the digital currency and something else that has so far seemed insignificant.
The last 24 hours showed an amazing similarity between the behavior of bitcoin and the more developed world financial markets. The bitcoat price chart, built on the background of the S & P 500 E-Mini futures, shows similar dynamics of both.
The adjustments are similar, with both currencies returning to the levels that were last seen in November. The regression analysis for the last two years shows a ratio of 0.7 between the bitcoin price and the S & P 500 index, where 0 is the weakest correlation and 1 is the strongest. During the year the correlation is 0.8.
The connection between bitkoynom and stock markets is quite unexpected, given the fact that bitkoyn is just a piece of code.
But we must not ignore its place in the portfolios of investors, as well as in psychology. Yes, it's definitely not Wall Street, but at the end of last year bitcoin became a real financial tool. At the same time, he reached a record price of almost $ 20,000 when futures trading began.
A large number of companies believed in rumors about the "bubble", and Bitcoin Investment Trust demonstrated that its net profit from the increase in net asset value exceeds 50%. Heads of hedge funds have discovered themselves as crypto experts. Brokers constantly kept customers informed about the state of bitcoins, like oil, gold or euro.
Therefore, instead of believing that bitkoyn can sink into oblivion, and no one else will hear about it, you can be sure that he will "shoot" in another sphere.
In the opinion of one of the main traders, losses in the investors' crypto-currency portfolios, after slipping bokkoy from $ 12,000 to less than $ 8,000 per week, probably led to sales of other assets to compensate for losses.
We can not but note that the topic of speculation with bitkoynom is a dark horse. But the current situation is certainly not similar to most of the hedging against traditional financial markets