Bitcoin has Zero Correlation with Gold or Stock, No Effect of Global Turmoil on Crypto Market says eToro Analyst
January 17th, 2019
- Down over 81% from its ATH, Bitcoin is currently trading at $3,638
- eToro analyst, Mati Greenspan says, no correlation between bitcoin and gold, USD, and the stock market this year
- Meanwhile, US govt. shutdown to put greater damage on its economy while China’s central bank injects biggest-ever daily net cash into banking system due to the economic slowdown
“Crypto just DGAF”, Bitcoin Moving at its Own Pace
The leading cryptocurrency is seeing the loss of 0.78 percent in the past 24 hours at $3,638 as per Coinmarketcap. Meanwhile, the daily trading volume registered is $5.4 billion.
Last year, the correlation between Bitcoin and the stock market has been a topic of debate. It has been concluded that the price of bitcoin and equity have somewhat of a correlation as both were on an upward curve.
Historically the correlation between them has been insignificant as last year Fundstrat’s Tom Lee put this in no uncertain terms:
“Cryptocurrencies have their own economy based on activity on that Blockchain. Equities have their own economy based on earnings per share multiples. The institutional overlap is essentially zero.”
There might be some correlation in the past, but it is no more there as Mati Greenspan, the senior analyst at eToro took to Twitter to share.
While US Under Shutdown & China Injecting Biggest-Ever Daily Net Cash
While Bitcoin is currently seeing the red and is down over 81 percent from its all-time high, gold is seeing a rise which could be moving towards a breakout pattern according to Greenspan.
As for the stock market, it actually rose overnight on Wall Street due to the strong quarterly earnings by major banks. However, US stock futures traded lower and S&P and Nasdaq pointed to declines while Dow Futures were over 100 points lower due to worries over Brexit uncertainty and China’s economy, reported CNBC.
Meanwhile, the partial government shutdown in the US is inflicting great damage on its economy, according to the New York Times’ recent report. Whereas, yesterday China’s central bank injected the biggest ever daily net cash of $82.73 billion into the banking system via reverse repo operations. Due to the concern of a slowdown in economic growth, even more, such stimulus is expected.