Analysts called the condition for the return of bitcoin to growth

Posted 21 February, 2022

The first cryptocurrency has no chance to strengthen while the correlation of digital assets with the stock market is at a high level, according to the analytical company Santiment

Bitcoin is fully correlated with the stock market and in particular with the S&P 500 index, according to the analytical company Santiment. According to analysts, the latest drop in the value of the cryptocurrency below $40,000 is due precisely to the decline in the stock market. As long as the correlation of cryptocurrencies with the stock market is at a high level, bitcoin has no chance of returning to growth, analysts are sure. According to them, the strengthening of bitcoin will occur as the correlation of cryptocurrencies with the stock market decreases.

On February 20, the price of bitcoin for the first time since the beginning of the month fell to $38,000. The asset fell by 8% over the week. On February 21, the cryptocurrency is trading at $39.1 thousand, and its capitalization is $742 billion, according to CoinGecko.

 


Source: Twitter

 

At the end of January, the correlation between the Bitcoin exchange rate and the S&P 500 index reached a record high since October 2020, according to the analytical company Arcane Research.

S&P 500 (Standard & Poor's 500 Index) is an American stock index that reflects the dynamics of the stock price of the 500 largest companies by market capitalization in the US market.
 

Previous story

22 February, 2022 08:46

← Australia is ready to announce sanctions against Russia due to the recognition of the LNR and the DNR

Australia, together with partners, is ready to announce sanctions against Russia in connection with the recognition of the LPR and DPR

 

Australia is ready to announce sanctions against Russia due to the recognition of the LNR and the DNR

Next story

21 February, 2022 09:14

Cryptocurrency sags on geopolitical risks →

The main cryptocurrencies fall significantly on Monday, and bitcoin fell below the psychological mark of $40,000 amid growing geopolitical risks in Eastern Europe.
 

Cryptocurrency sags on geopolitical risks
Write a comment
 
Prove you’re not a bot + 19 = 39