Connect with us
[crypto-donation-box]

Blockchain

Bitcoin, Gold and the S&P 500 Are Increasingly Correlated

The price movement for Bitcoin and gold has become similar as investors look for hedge assets. But Bitcoin’s price also mirrors the stock market.

Republished by Plato

Published

on

In brief

  • The correlation between Gold and Bitcoin prices is at record highs.
  • Bitcoin and the S&P 500 index is also highly correlated.
  • These correlations have historically swung back and forth from positive to negative.

Gold is usually considered a hedge against speculative investments. Right now, Bitcoin price is highly correlated with both gold and stock prices. Why is BTC good for bulls and bears at the same time?

As governments struggle to revitalize their economies while simultaneously halting the spread of coronavirus, hard commodities—those commodities that are mined or extracted— have become popular investments for experts and amateurs alike, who fear a possible loss of their purchasing power.

Gold, of course, is the commodity par excellence when it comes to storing value. In fact, during the coronavirus pandemic, the precious metal reached an all-time high in price and is still climbing. Its trading activity has been increasing since last year, but the massive printing of money by the US government has extended the price spike.

Over the last several months, Bitcoin also emerged as an alternative store of value to gold. Its price embarked on a bull run, even recovering from a crash during the COVID-19 outbreak.

In fact, over the last two months, gold and Bitcoin price correlation has increased to a record high, meaning their price movements have become more similar.

The price action probably has more to do with the dollar than with gold itself. The US currency is depreciating, and the Federal Reserve recently decided to let inflation rise above the 2% annual target. This means that as time passes, people cannot buy the same assets with the same amount of money. That is when hedges acquire a special appeal.

The record correlation between Bitcoin and gold indicates investors don’t really see a difference between the two, as they behave the same and serve the same purpose as stores of value. 

But it’s not just gold. Bitcoin is also correlated to the S&P 500. That’s because, while some see Bitcoin as a store of value, others see it as an investment that can increase their wealth.

And for them, there’s also a graph that tells the story:

Although they had previously separated during the gold fever, Bitcoin and the S&P 500 also achieved a historical correlation during the pandemic. 

The S&P 500 is one indicator of how well America’s top companies are performing. The valuation of the markets is impacted by many things, including economic trends and geopolitics. 

In the end, charts are nothing but lines explaining what happened in the past. And, in the past, the correlation has increased only to drop back into negative territory, as both charts show. And no matter how good the analysis is, no one can see the future. Nonetheless, every day that goes by, it seems safer to say that Bitcoin will be a part of it for investors.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

Source: https://decrypt.co/41358/bitcoin-gold-sp-500-are-increasingly-correlated

Blockchain

Paraguayan Official Confirms: In July We Legislate Bitcoin

Republished by Plato

Published

on

Paraguay’s Deputy of the Nation, Carlos Antonio Rejala Helman, has confirmed that new legislation in regards to Bitcoin will arrive in July. This comes amid growing adoption in Latin America led by El Salvador, which could be followed by Panama as well.

  • CryptoPotato reported last week when Rejala Helman said his country planned to start working on an “important project” that included Bitcoin and PayPal
  • Although he provided little-to-no information at the time about the precise nature of the project, the official confirmed it’s coming in a more recent tweet.
  • Commenting on news indicating that one of Paraguay’s largest entertainment organizations has started to accept various digital assets, Rejala Helman emphatically asserted, “This is Paraguay. July we legislate! #Bitcoin.”
  • This comes shortly after Gabriel Silva, a Panamanian congressman, laid out plans to present a bill on cryptocurrency adoption as a legal tender as well.
  • He believes Panama should not trail other nations from the region that have already taken steps to legalize Bitcoin.
  • Naturally, he meant El Salvador. The small country located in Central America has been the leader in terms of BTC adoption.
  • As reported recently, the nation officially voted in favor of a new rule making Bitcoin a legal tender within its borders. El Salvador’s President, Nayib Bukele, further outlined his support for the asset and even urged miners to mine BTC with the thermal energy of the country’s volcanoes.
SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/paraguayan-official-confirms-in-july-we-legislate-bitcoin/

Continue Reading

Blockchain

Spanish Banking Giant BBVA to Launch Bitcoin Trading and Custodial Services in Switzerland

Republished by Plato

Published

on

After conducting tests for several months, the Swiss branch of the large Spanish bank – Banco Bilbao Vizcaya Argentaria (BBCA) – has announced plans to release two services related to the cryptocurrency industry.

  • According to the official statement, private banking customers based only in Switzerland will have the option to trade bitcoin and other digital assets starting from Monday – June 21st.
  • BBVA’s second service will enable its clients to store their digital assets on a regulated platform, and both initiatives will launch simultaneously.
  • Nevertheless, the entity has no plans to offer advice or actively manage any funds related to cryptocurrency investments.
  • Alfonso Gomez, CEO of BBVA Switzerland, explained that these services come after an extended trial period and enhanced customer demand.
  • “This gradual roll-out has allowed BBVA Switzerland to test the service’s operations, strengthen security, and, above all, detect that there is a significant desire among investors for crypto-assets or digital assets as a way of diversifying their portfolios, despite their volatility and high risk.” – he added.

  • The services and a bitcoin management system will also be available in the bank’s mobile application. Users will be able to use to review their investments and track their performance.
  • The bank will provide a personalized digital wallet, which will enable customers to convert BTC and other digital assets to euros or other fiat currencies, and vice versa. The process will be automatic, “without delays and without the illiquidity that affects other digital wallets or independent brokers.”
SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/spanish-banking-giant-bbva-to-launch-bitcoin-trading-and-custodial-services-in-switzerland/

Continue Reading

Blockchain

Polkadot, EOS, IOTA Price Analysis: 18 June

Republished by Plato

Published

on

The cumulative market cap of the cryptocurrency sector was $1.57 trillion at press time, having fallen by 2.39 percent since yesterday. The market’s alts were falling too, with the likes of Polkadot, EOS, and IOTA seeing red on the charts. While Polkadot continues to maintain its position in the top 10, EOS was ranked 27th while IOTA was ranked 40th.

Polkadot [DOT]

Source: DOT/BUSD – Trading View

DOT fell from a recent high of $26 to $22.34, its price at press time. Its 24-hour trading volume was down by 31.28 percent at $1 billion. Its price dropped by 6.3 percent in just 24 hours.

The coin has not dipped below the $20-resistance mark since the beginning of this month. However, after climbing to a high of $28.5 on 3 June, the alt’s price went sideways and did not cross the lower high of $26. There may be a further dip in the price, as evidenced by the findings of the Parabolic SAR.

The Stochastic RSI at the lower end, below 20, suggested that the prices may rise, however, following a reversal. Finally, the Chaikin Money Flow was below zero and pointed to high capital outflows and the likelihood of a further drop in price.

EOS

Source: EOS/BUSD – Trading View

Even though EOS had made a decent recovery toward the end of May, it slumped again from a high of $7.7. Its price continued to drop today, dipping by 3.8 percent.

Consolidating between the $4.4 support and $5.4 resistance since 8 June, the coin was changing hands at $5, at the time of writing.

The parallel Bollinger Bands showed no signs of volatility and dominant bearish momentum was displayed by the Awesome Oscillator. The Relative Strength Index indicator was moving upwards, indicating growing buying pressure.

IOTA

Source: IOTA/BUSD – Trading View

After a significant drop from $ 1.2 a few days ago, IOTA was still trading in the red after dropping by 3.6 percent in the last 24 hours. At $31 million, its 24-hour trading volume had dropped by 28.29 percent.

Over the last ten days, its price did not breach the $ 1.2-resistance mark. However, a new support level was established after 13 June. With the indicator below the 20-mark, the Average Directional Index pictured a weak trend which may strengthen in the future, going by its movement.

The MACD and Signal lines were meeting and neither a bearish nor bullish trend was established. The Parabolic SAR’s markers were found above the candlesticks and pointed to an upcoming dip.


Subscribe to our Newsletter


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/polkadot-eos-iota-price-analysis-18-june

Continue Reading
4 days ago

Valorant Ep. 2 FORMATION Player Card: How to Claim

News4 days ago

The World Economic Forum’s Cryptocurrency Guide Lists Its Choice Of “Winning” Projects

Uncategorized4 days ago

Mark Cuban: DeFi could be the ‘next great growth engine’ for the US

Uncategorized1 day ago

The World Bank wants no part in El Salvador’s Bitcoin revolution

News5 days ago

Shiba Inu Drops Hard Below Critical Support Level

Uncategorized3 days ago

Banks Should be Scared of DeFi Warns Mark Cuban

Blockchain3 days ago

Grayscale to Unlock 16,000 Bitcoin Shares on July 19

Uncategorized1 day ago

Healthcare: A trillion dollar opportunity for blockchain?

Blockchain5 days ago

Will Ripple’s new ODL corridors impact XRP’s price?

Blockchain4 days ago

Mark Cuban Demystifies DeFi and Yield Farming for Beginners

Blockchain2 days ago

Coinbase Pro to List Dogecoin Rival Shiba Inu, Token Gains 33% in Price

Blockchain5 days ago

Elon Musk: Tesla Will Resume Allowing Bitcoin Transactions With One Condition

Blockchain4 days ago

Edgewater Markets Taps Michael Cleary as Its New Director of Sales

Blockchain4 days ago

Deadpool Soundtrack Composer Tom Holkenborg To Auction ‘Soundtrack Of Your Life’ NFT

Uncategorized5 days ago

PSG.LGD sweep Evil Geniuses, win WePlay Esports AniMajor

5 days ago

PSG.LGD triumph at WePlay AniMajor

Blockchain4 days ago

Bitcoin derivatives data shows pro traders ignored today’s $41K pump

Blockchain23 hours ago

GSA To Add Litecoin For The First Time In Upcoming Cryptocurrency Auction

Blockchain4 days ago

Wall Street Wonders if Bitcoin Could Replace Fiat Currencies

Uncategorized5 days ago

Why NFL’s Russell Okung Asked Nigeria To Adopt The Bitcoin Standard

Trending