On the comparison chart below 
BTCUSD is depicted by the linear red line (non scalable) and 
SPY is the green and red candlestick pattern.
Contrary to some commentators that there is no relationship to the stock market and the cryptocurrency market there is clearly a correlation where bitcoin is preceding the stock market by 2-5 weeks. The last 3 months the interval has been closer to 2 weeks.
Even though the correlation is not a perfect 100% , denying any resemblance in my opinion is not realistic.
One explanation could be that both assets signal appetite for risk. More so for cryptocurrencies of course. Altcoins such as
ETHUSD
ADABTC
BCHUSD
TRXBTC$BINANCE:XMRBTC
ONTBTC
STEEMBTC are even considered higher risk.
An example could be the post election euphoria and records for the stock market and bitcoin. Since February the stock market is much more cautious and a care free bullmarket is no longer the case. Bitcoin has lost 69% of its value from the peak to the bottom.
Please feel free to comment and follow me on Twitter
BTCUSD is depicted by the linear red line (non scalable) and SPY is the green and red candlestick pattern. Contrary to some commentators that there is no relationship to the stock market and the cryptocurrency market there is clearly a correlation where bitcoin is preceding the stock market by 2-5 weeks. The last 3 months the interval has been closer to 2 weeks.
Even though the correlation is not a perfect 100% , denying any resemblance in my opinion is not realistic.
One explanation could be that both assets signal appetite for risk. More so for cryptocurrencies of course. Altcoins such as
ETHUSDADABTCBCHUSDTRXBTC$BINANCE:XMRBTCONTBTCSTEEMBTC are even considered higher risk. An example could be the post election euphoria and records for the stock market and bitcoin. Since February the stock market is much more cautious and a care free bullmarket is no longer the case. Bitcoin has lost 69% of its value from the peak to the bottom.
Please feel free to comment and follow me on Twitter
Note
if the correlation still holds we should see a surge in BTC over the next 5d.Note
if this theory still holds true we should see a significant pull back on the S&P 500.
follow me on Twitter @HungryforFA
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
follow me on Twitter @HungryforFA
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.