Is Bitcoin (BTC) Slowly Turning into Every Stock Market Hedge Investors ‘Wet Dream’?

Is Bitcoin [BTC] Slowly Turning Into Every Stock Market Hedge Investors Wet Dream?

It is no secret that with each passing day, the Bitcoin market seems to be looking less and less like the S&P 500. For the global crypto community at large, this appears to be a good thing — especially since many “so-called experts” are constantly spreading falsities about the economic future of this nascent domain.

A More In-Depth Look At The Issue

As per an all-new report released by Fundstrat recently, Bitcoin’s correlation to the S&P 500 has dipped quite significantly since the start of this month — even though the price of the flagship crypto asset is once again above the $5,000 mark.

What this essentially means is that the relationship between Bitcoin and the stock market is becoming wider and more visible (i.e. when stock prices decrease, the value of BTC increases and vice versa).

In relation to this matter, it should also be pointed out that not only are BTCs earnings this year quite strong, but the premier alt-currency is also offering its owners with a lot of financial diversity and flexibility.

A Technical Perspective

As mentioned previously, when glancing over the finer details of the global economic market, we can see that bitcoin and the S&P 500 have been exhibiting signs of a massive “negative correlation”. For example, as per a Fundstrat study published earlier today, over the course of the last seven days, the relationship between BTC and the stock market has grown wider — with the correlation dropping by over 15%.

BTC vs Other Assets (Chart Courtesy of Fundstrat)

The aforementioned states:

“When comparing bitcoin to other major asset classes (stocks, bonds, hedge funds, oil, and gold), bitcoin has the highest correlation to gold (12.6%) and the lowest correlation to S&P 500 (-3.2%).”

Key Stats Worth Pointing Out

• As can be seen from the chart presented above, BTC’s technicals are currently in line with gold the most (12.6% to be exact).
• Recent market movement seems to suggest that bullish crypto activity will continue to rise in the coming few weeks.
• Fundstrat’s Tom Lee recently posted a message on his Twitter account claiming that owing to the “negative correlation” being exhibited by BTC in relation to the S&P 500, more and more institutional players have been buying a wide variety of crypto-assets recently.

Final Take

In closing out this piece, it should be pointed out that Lee is of the opinion that the stock market will see a rally of around 25% by the end of this year. Not only that, based on his predictions, he expects the S&P 500 to surge past the 3,100 mark and the Dow to cross 30,000 thresholds (by Dec 2019).

Last but not least, Lee also believes that BTC will close out the year at an impressive price point of around $14,000.

https://twitter.com/fundstrat/status/1116744855659610113