Journalist
Posted:
- Bitcoin outperformed traditional U.S. stocks in 2024.
- The higher correlation has affected Bitcoin’s safe haven narrative.
The crypto market and traditional finance began to move in tandem in 2024 after a prolonged decoupling last year.
Notably, the correlation between Bitcoin [BTC], and popular stock indices like S&P 500 and NASDAQ 100 jumped to a 2-month high on the 19th of February, per on-chain analytics firm IntoTheBlock.
Source: IntoTheBlock
“Risky” markets come closer
AMBCrypto studied the price trajectories of the two asset classes and detected a degree of bullishness in both.
Bitcoin clearly emerged the victor, rising 16% year-to-date, while the S&P 500 Index recorded decent gains of 5.5% in the same time.
IntoTheBlock attributed the rally to strong expectations of rate cuts by the U.S. Federal Reserve.
With the inflation cooling significantly, market participants were hopeful of a more dovish stance, which would benefit risky assets like Bitcoin and stocks.
Source: Trading View
Take it with a pinch of salt
While the strong correlation relied on higher market liquidity and thus higher future prices, such a scenario should be viewed with caution.
Proponents of Bitcoin have long positioned it as a safe haven, or an investment whose value is expected to be steady or even rise during economic downturns, similar to precious metals like Gold.
Put simply, to be seen as an inflation hedge by investors, an asset must display significant detachment from traditional markets
Now if Bitcoin starts behaving like risky assets, this narrative turns upside down.
The other problem, ironically, has been the launch of spot Bitcoin ETFs. The investment vehicle makes it much easier for TradFi participants to trade Bitcoins.
It was highly likely that these investors would treat Bitcoin as another risky asset, causing it to respond to macroeconomic triggers in the same way that Wall Street reacts.
Such volatility may not be ideal for Bitcoin in the long term.
How much are 1,10,100 BTCs worth today?
That being said, Bitcoin’s 1-week realized volatility dropped significantly over the past month, according to AMBCrypto’s analysis of Glassnode’s data.
It remains to be seen if higher inflows into ETFs will inject more volatility into the crypto market.
Source: Glassnode
Journalist
Posted:
- Bitcoin outperformed traditional U.S. stocks in 2024.
- The higher correlation has affected Bitcoin’s safe haven narrative.
The crypto market and traditional finance began to move in tandem in 2024 after a prolonged decoupling last year.
Notably, the correlation between Bitcoin [BTC], and popular stock indices like S&P 500 and NASDAQ 100 jumped to a 2-month high on the 19th of February, per on-chain analytics firm IntoTheBlock.
Source: IntoTheBlock
“Risky” markets come closer
AMBCrypto studied the price trajectories of the two asset classes and detected a degree of bullishness in both.
Bitcoin clearly emerged the victor, rising 16% year-to-date, while the S&P 500 Index recorded decent gains of 5.5% in the same time.
IntoTheBlock attributed the rally to strong expectations of rate cuts by the U.S. Federal Reserve.
With the inflation cooling significantly, market participants were hopeful of a more dovish stance, which would benefit risky assets like Bitcoin and stocks.
Source: Trading View
Take it with a pinch of salt
While the strong correlation relied on higher market liquidity and thus higher future prices, such a scenario should be viewed with caution.
Proponents of Bitcoin have long positioned it as a safe haven, or an investment whose value is expected to be steady or even rise during economic downturns, similar to precious metals like Gold.
Put simply, to be seen as an inflation hedge by investors, an asset must display significant detachment from traditional markets
Now if Bitcoin starts behaving like risky assets, this narrative turns upside down.
The other problem, ironically, has been the launch of spot Bitcoin ETFs. The investment vehicle makes it much easier for TradFi participants to trade Bitcoins.
It was highly likely that these investors would treat Bitcoin as another risky asset, causing it to respond to macroeconomic triggers in the same way that Wall Street reacts.
Such volatility may not be ideal for Bitcoin in the long term.
How much are 1,10,100 BTCs worth today?
That being said, Bitcoin’s 1-week realized volatility dropped significantly over the past month, according to AMBCrypto’s analysis of Glassnode’s data.
It remains to be seen if higher inflows into ETFs will inject more volatility into the crypto market.
Source: Glassnode
where buy clomid without dr prescription buy generic clomid without prescription clomiphene prices how to buy cheap clomiphene pill where to get cheap clomiphene no prescription can i order cheap clomiphene without rx cost of clomid
I couldn’t weather commenting. Warmly written!
With thanks. Loads of knowledge!
buy zithromax pills for sale – buy floxin paypal flagyl 400mg canada
order rybelsus 14mg online – buy semaglutide 14 mg without prescription buy cyproheptadine for sale
buy motilium 10mg generic – buy motilium generic cyclobenzaprine where to buy
inderal drug – propranolol drug buy methotrexate sale
buy nexium online cheap – nexium to us cost esomeprazole 20mg
buy cheap generic coumadin – anticoagulant losartan brand
mobic 15mg sale – https://moboxsin.com/ buy mobic 7.5mg without prescription
prednisone usa – corticosteroid prednisone 5mg cost
cheap erectile dysfunction pills – online ed meds hims ed pills
purchase amoxicillin pills – https://combamoxi.com/ amoxil tablet
fluconazole 100mg us – https://gpdifluca.com/# order fluconazole
buy escitalopram sale – anxiety pro order escitalopram 20mg
buy generic cenforce 50mg – https://cenforcers.com/ buy cenforce 100mg sale
cialis prescription assistance program – https://ciltadgn.com/# best place to buy generic cialis online
buy cialis no prescription australia – https://strongtadafl.com/# teva generic cialis
order zantac 300mg for sale – https://aranitidine.com/# zantac 150mg uk
50mg generic viagra – https://strongvpls.com/ cheap viagra inurl /profile/
This is the type of enter I unearth helpful. generic azithromycin
Thanks towards putting this up. It’s okay done. https://ursxdol.com/cenforce-100-200-mg-ed/
I am actually enchant‚e ‘ to glance at this blog posts which consists of tons of useful facts, thanks towards providing such data. cost loratadine
More articles like this would remedy the blogosphere richer. pharmacie en lingne pour du fildena 25mg
Facts blog you have here.. It’s intricate to assign elevated quality article like yours these days. I really appreciate individuals like you! Withstand care!! https://ondactone.com/simvastatin/
More text pieces like this would insinuate the интернет better.
buy topiramate sale
This is a theme which is virtually to my callousness… Many thanks! Quite where can I find the connection details for questions? https://www.forum-joyingauto.com/member.php?action=profile&uid=47847
order dapagliflozin 10mg for sale – click buy cheap generic dapagliflozin
order xenical online cheap – https://asacostat.com/# orlistat us
This is the tolerant of enter I unearth helpful. https://myvisualdatabase.com/forum/profile.php?id=118731