Since the inception of Bitcoin (BTC), it has been observed that the currency is trading to the tune of the stock market, the S&P 500.
Even at the start of 2022, Bitcoin was trading similarly to the tech stocks of the stock market. This is largely because both the S&P 500 and Bitcoin react drastically to macroeconomic factors. Investors and traders are waiting impatiently for the day that BTC detaches from it and trades to its tune.
This seems to be manifesting at the moment. Now, while the US stock market is trading negatively, Bitcoin and other cryptocurrencies have maintained their price action and are surging, with a little volatility.
Bitcoin Detaches From The S&P 500
At the time of writing, Bitcoin is valued at $19,546 after a surge of 1.10% over the last 24hrs. Even on the weekly chart, Bitcoin’s action was below 1% which claims that the currency is holding on strong. Meanwhile, during the same time period, the S&P 500 plunged more than 2%. This momentum is an indication that Bitcoin is trying not to correlate with the US stock market.
The same is confirmed by an analytic firm, Santiment, via a Twitter post
Meanwhile, with increased financial measures amidst rising inflation rates, the Central Banks around the world are striving to overcome the terrible macroeconomic condition. Even the British central bank has resorted to printing more money in order to protect its bonds.
A well-known investor, Stanley Druckenmiller, while in conversation at CNBC’s Delivering Alpha conference, claimed that people are soon going to be losing their trust in the Central Banks, after which they will turn to cryptocurrencies. This will also be when the banks stop trying to regulate the crypto space to such a large extent.
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