Bitcoin Outpaces S&P 500, Altcoins In Unique Trading Session
Bitcoin has undergone a strong rally over the past day. The leading cryptocurrency currently trades for $11,750, around $300 higher than it was trading yesterday. $11,750 is also just shy of $600 above the lows of last week, triggered on news of OKEx freezing withdrawals.
What’s interesting about this rally is that BTC has managed to outpace a swath of other assets.
TradingView.com data indicates that Bitcoin is outpacing a swath of other assets over the past day’s trading session. It is outperforming the S&P 500, gold, along with altcoins. The latter is especially puzzling as altcoins have acted as a high beta play on Bitcoin over recent weeks.
Chart of BTC's price action over the past few weeks alongside that of the S&P 500 futures shared by crypto trader SmartContracter (Twitter handle). Source: BTCUSD from TradingView.com
Analysts noted that this price action is peculiar, as Bitcoin has traced the S&P 500 to a T over the past few months, especially since the liquidity event in March:
It is unclear if this uncorrelated price action will continue, as it’s believed that Bitcoin is moving higher on talks of a continued push to central bank digital currencies.
Will The Move Upward Continue?
Even if the uncorrelated nature of Bitcoin doesn’t persist for long, analysts think that all markets will move higher with time as stimulus talks continue.
Raoul Pal, CEO of Real Vision, and a former Goldman Sachs hedge fund chief, recently commented on the potential for stimulus amid the push for CBDCs:
Others have echoed this sentiment, saying that any increase in the level of fiat in the system will drive BTC higher.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Breaks Seriously Higher While S&P 500 Drops on Stimulus Uncertainty
Originally from Bitcoinist.com https://ift.tt/2HadWau
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