May 28, 2023

What does Bitcoin need to grow amid falling S&P 500 index

What does Bitcoin need to grow amid falling S&P 500 index

The S&P 500 index is experiencing the fastest decline in history, writes CNBC. At yesterday's trading session The S&P 500 immediately fell 4.42%, and the Dow Jones lost a record 1,190.9 points amid concerns about the coronavirus.

Goldman Sachs analysts in their report on Thursdaywarned that the virus could disrupt supply chains in factories, reduce export demand and, ultimately, stop production growth in China, the United States and other countries. Bank of America analysts said Thursday that the coronavirus "has taken over global markets."

The prevailing interest rates are expectedclose to historical lows and set at negative levels in Europe and Japan, will not grow "until the economic activity in China improves."

According to Deutsche Bank, S&P 500 correctionbecame the fastest drop of 10% from historical highs in history. According to Deutsche Bank chief economist Torsten Slock, the pace of decline is even faster than Black Monday in October 1987 (the peak was reached in August 1987).

Messari co-founder Dan McCardle noted that the S&P 500 weekly candlestick looks like a dump of a whale on the low-liquid altcoin market:

Although in the past, bitcoin sometimes showed a negative correlation with traditional assets, now it seems that this is not the case, so cryptanalysts have so far forgotten about the thesis about bitcoin as an asset-refuge.

Billionaire investor Hamath Palihapitiya whoHe is the chairman of the space company Virgin Galactic, in an interview for CNBC on Wednesday said that bitcoin “does not correlate at all” with other classes of assets, such as stocks and bonds. He is confident that the demand for bitcoin is not growing under the influence of events such as the outbreak of coronavirus.

Cryptocurrency analyst Alex Saunders also believes that bitcoin needs to "separate from the crowd." He must be “completely uncorrelated” in order to grow.

“The best thing that should happen with bitcoin rightNow, this is not growth when stocks fall; and not fall when gold falls. It must be completely uncorrelated. At the moment, his affairs are not very good. However, things can change very quickly. Blue graph - S&P 500; orange - BTC; black is gold. ”


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