Does BitCoin act like stocks? BitCoin price Prediction – Review and Chart 2022
Does BitCoin Price Prediction 2024
Does BitCoin It is among the crypto coins traded on stock exchanges. Does BitCoin comments and analysis, which are carefully followed by stock market investors, attract great attention. You can follow us and benefit from the information here.
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BitCoin supporters have long argued that cryptocurrencies are a store of value in the face of ‘digital gold’ and inflation. However, other investors aiming to adapt to the US Federal Reserve’s plans to tighten financial conditions say that BitCoin has long acted in a similar way to investor sentiment in stock markets. highlights the correlation between cryptocurrency and the S&P 500 Index. According to Dow Jones Market data, the 100-day correlation between the index and BitCoin reached 0.49 on Tuesday. This figure shows that the correlation between stocks and BitCoin has reached the highest level since July 2020. However, the 60-day correlation between the S&P 500 Index and BitCoin also reached 0.54. This figure represents the highest level since 2010.
Borsagundem.com shows the extent to which different asset units trade relative to each other. Correlation criteria vary between -1.00 and 1.00. Positive correlation means that assets move in the same direction, while negative correlation means assets move in opposite directions relative to each other. The magnitude of the absolute value of the coefficient also indicates that the correlation relationship between them.
In particular, the 100-day correlation between the Nasdaq Index, which represents technology stocks on the US stock markets, and BitCoin , rose to 0.47 on Friday, reaching the highest level since October 2020. Sensitive to the rise in bond yields, the Nasdaq Index had a tough start to the year, finishing the first week of the year three percentage points away from the correction zone. The Nasdaq has been tending to recapture the ground it lost over the past two sessions.
Since the beginning of 2021, the correlation coefficient between BitCoin and the S&P 500 or the Nasdaq Composite has been much higher than that between BitCoin and gold. However, BitCoin and gold have had a negative correlation recently. Gold is traditionally known as an inflation safe haven in investment terminology.
Although BitCoin traded lower than its November high, crypto mining shares on global exchanges suffered even greater losses. Crypto data analytics firm Arcane Research has created a market capitalization-weighted index of 15 of the largest publicly traded BitCoin mining companies. The index in question shows that crypto mining stocks have dropped by almost 50% since November 10, when BitCoin hit an all-time high, as opposed to the 38% drop in BitCoin .
Arcane’s research report noted that mining stocks outperformed BitCoin during bull market cycles and tended to outperform BitCoin when cryptocurrencies were bearish.
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