📌THE FIGHT OF BITCOIN AGAINST THE MARKETS
📌Bitcoin has shown remarkable resilience compared to traditional markets, especially in comparison to the S&P 500.
🔸While the S&P 500 has fallen 20% from its all-time high, Bitcoin has only retraced 30% from its peak, which is considered normal compared to previous bull cycles.
✅*Possible scenarios for Bitcoin's rise:*
- *Hedge against economic uncertainty*: Bitcoin may be acting as a safe haven due to its scarcity, resistance to censorship, and ability to make global transfers without intermediaries. Its growing institutional and governmental interest as a store of value might be contributing to its rise.
- *Improvement in risk market sentiment*: Bitcoin's strength may be reflecting a relief from macroeconomic tensions, such as the de-escalation of the trade war and the reduction of inflation in the United States. This could be driving a broader recovery in global financial assets.
✅*Correlation with other assets:*
- *Gold*: Bitcoin has begun to show a correlation with gold, considered a traditional safe-haven asset. The daily correlation coefficient of Bitcoin with gold has risen to 0.72.
- *S&P 500*: The correlation of Bitcoin with the S&P 500 has decayed to 0.51, suggesting that Bitcoin is behaving more independently.
✅*Current price and outlook:*
- The price of Bitcoin has risen to over $94,000, its highest in two months, and is positioned 11% below its all-time record of $109,000.
- Experts believe that Bitcoin could continue to rise due to its appeal as a safe-haven asset and its growing institutional adoption.
