Regardless of Bitcoin’s (BTC) largest value and securing its position above the $20,000 line once again, the crypto coin is still unstable, and its likeness and association with the stock market have been utilized several times, in order to record certain important conclusions from the earlier cases.
One of these is the fact that bearish industrial rallies, or times when tokens grow in price shortly during a longer period of decline, can prove to be very tempting, according to what the senior research analyst at cryptocurrency marketplace intelligence portal MessariTom Dunleavy claimed on October 5.
Uploading the data of the past S&P 500 bearish industrial rallies for reference, Dunleavy detailed the roleplay of these short durations – about which he claims the traders are currently in– particularly keeping the previous record that depicts them “often exceeding 20% in short bursts” in mind.
It is also quite noteworthy that the link between cryptocurrencies and S&P 500 has many times been at the core of the scrutiny of financial analysts. For example, Mark Mobius, the originator of crypto management agency Mobius Capital Partners, has raised his opinion that BTC’s downfall is not good for the S&P 500, mentioning that with BTC moving down, the S&P 500 is sure to follow.
Also lately, in September, this year itself, digital asset investor and researcher Josh Rager utilized the S&P 500 Index equities movement chart as the basis to depict that conditions were not “looking so good right now” for Bitcoin, according to what certain relevant sources reported.
With that made public, the on-chain and social metrics portal Santiment, not very long ago, mentioned that reduction in complexity in the association between cryptocurrencies and equities, in parallel with the stabilization of the S&P 500 being as low as -2.4%, was an appealing sign for cryptocurrencies as experts were waiting for certain BTC momentum.
Apart from all of this, charts presenting the 10-year increment of both S&P 500 and Bitcoin have indicated that the average values of the S&P 500 have grown up by 4 times, whereas Bitcoin has gone up by as much as 1,000 in the same time duration, showing Bitcoin was a better business.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.