SPX bitcoin comparison - SPX bitcoin comparison
SPX bitcoin comparison - SPX bitcoin comparison
what the SPX bitcoin comparison is showing? What this all about..... See below.
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Sentiment Trader told ==> our VIP MEMBERS here <== that my POST RIGHT HERE ON QUORA, GOT ALOT OF ATTENTION! I
What I talked about is the parallels between bitcoin crash and stock market which is currently crashing…. so I would like to talk a little about this today.
As you can see these have both been crashing at the same time. Here is a chart with the BTC Vs. S&P 500. Quite interesting, and lets talk a little bit about bitcoin and where it could be going. ?
Our Members here => VIP members here Were told that, The s&p chart [as above] reminds me a little bit of bitcoin chart last few months!
Remember, bitcoin crashed first, and the the stock market sold off soon after.
This is an in interesting correlation, in the past 12 months, not only did we have a strong rally in equities we had a strong rally in bitcoin and cryptos as well. Meaning, lots of new people opening coinbase accounts, and then BITCOIN launched futures on the CME exchange, so bigger investors are buying bitcoin and buying smaller coins outright.
So I WOULD NOT be surprised, to see investors who saw this as risk on assets [in terms of equities] were also buying crypto currencies at the same time.
So as bitcoin began to weaken, these investors began to “De-risk”, it could easily look like the S&P chart. However, the connection between these two [S&P500 and BITCOIN] is very limited.
We have to remember this is just uncanny occurrence, with bitcoin, the reason is crypto currencies have their own economy and activity on the blockchain. Equities have their own economy based on earnings per share and multiples. So they are in no way related.
There is little or no institutional overlap, and when you look at the total ownership of bitcoin, its 80% owned outside the USA. Its more of a globally held asset class. And consider size, bitcoin right now as you read this is only a 100 billion dollar market cap. The S&P is close to 30 Trillion US dollars. So in terms of the stock market, bitcoin makes up as much as a just 1 small company listed on the stock market itself. I am at a loss to work out why bitcoin and the S&P crashed together, it was more of a weird “occurrence” if you want to call it that.
WHERE TO NOW FOR BITCOIN!?
First of all I have been lucky in here, to get many predictions in here right!, I am blessed to have many people follow me. I am in no way a guru, or a psychic though. I use what I have at my disposal to make decisions that I think are astute at the time, so that is what I will do for you today!. What most investors what to know is where is bitcoin going, well, right now I am still very constructive about this asset class. You can see my previous posts for more complicated targets, and charts. I do think that sometime in 2018, in the next several months, we will see bitcoin go back to 24k eventually. For now in the short term, it may have a little bit of work to do or maybe bottom out soon after a significant sell off. One of the most important things you must realise is that no matter what the stock market does this year, you have to remember bitcoin is still the most important and liquid of these crypto assets.
Hope this helps.
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