Bitcoin No Longer Has Correlation with Conventional Markets as Analysts Predict Huge Breakout October 13, 2020 October 13, 2020 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsOctober 13, 2020 by Kelly Cromley

Bitcoin No Longer Has Correlation with Conventional Markets as Analysts Predict Huge Breakout

KrakenThe US based cryptocurrency exchange Kraken published a report that claims weakening of correlation between Bitcoin (BTC), the US dollar and traditional financial markets.

Specifically, Kraken’s September volatility report points that Bitcoin (BTC), by and large, continues to have a negative correlation with the US Dollar Index (DXY) since May, in spite of a short-term union between two markets in the beginning of September.

The document also points to the US Fed’s intention to continue with the zero percent interest rates for a minimum of three years i.e., 2023, and also the drop in growth rates.

Notably, since May, Bitcoin started having a positive correlation with the euro.

The document has pointed out that the beginning of the month witnessed an eight month low between BTC and the S&P 500 in terms of correlation.

As both markets started consolidating, the correlation started increasing. Bitcoin’s correlation with gold remains positive since mid-July, with both markets facing selling pressure in the past few weeks.

Going forward, Kraken expects Bitcoin will report robust performance in October, rather than September, and this would be uniform with the tendency demonstrated in eight of the last nine years.

The document forecasts October will lead a 11% gain for BTC, implying Bitcoin will end the month at $11,850, a 3% appreciation from prevailing price levels. Nevertheless, Kraken has pointed out that Bitcoin has recorded substandard performance in terms of monthly average in the past six of the nine months that have ended so far this year.

Kraken’s slight bullishness is eclipsed by bullish calls from two reputed analysts. Ex-hedge fund manager Raoul Pal in recent times disclosed that he has converted over 50% of his personal investment portfolio into Bitcoin in expectation of huge institutional adoption:

“Just from what I know from all the institutions, all of the people I speak to, there is an enormous wall of money coming into this.”

The prevailing scenario was compared with the one existed in mid-2017 by Alex Saunders of Nugget’s News. He forecast that institutional interest for Bitcoin will probably spark a “breathtaking rally”:

While issuing an update to subscribers yesterday night, Alex Saunders said:

“Publicly traded companies [and] legendary investors are singing from the rooftops about this new asset class at a time when there’s record money sitting in bank accounts looking to find a home.”

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.