Categories: Bitcoin

Traders Expected Bitcoin to Rise as Stock Market Fell, What Went Wrong?


The sudden plunge in the price of Financial markets had a major fall on Wednesday.

Medha Samant, investment director for Asian equities at Fidelity International, further emphasized that the global stock market sell-off spooked sentiment amidst fears that US markets would succumb to sell pressure after one of the longest bull rallies in the history of the country.

Alex Kruger, a cryptocurrency analyst and trader, said that a breakout of Bitcoin above a major resistance level in a period in which stocks are experiencing a large drop in value could allow the dominant cryptocurrency to see a massive increase in demand.

“A BTC breakout today, in a day when stocks and bonds are getting crushed, would be noticed by the whole world and would be very bullish. Waiting,” he said.

However, Kruger also noted that the correlation between stocks and traditional assets like gold and treasuries has also weakened in the past year. Thus, a struggling global market could also lead the crypto market to fall.

Kruger added:

“Treasuries and Gold are two assets widely used as portfolio hedges. Correlations with stocks broke down in 2018. Hence, in the event of a market crash, portfolios may suffer losses both from the stocks side and the hedge side. Forcing PMs to sell assets, accelerating a crash.”

Bitcoin Wasn’t in an Ideal Position to Recover

After recording a yearly low daily trading volume, Bitcoin struggled to demonstrate a recovery in its momentum and price trend. Other major cryptocurrencies and tokens were affected by the lack of momentum in BTC, unable to initiate a promising price movement.

Featured image from Shutterstock.

Follow us on Telegram or subscribe to our newsletter here.
• Join CLC’s crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from CryptoLiveClub? Click here.
• Open Positions at CLC: Full Time and Part Time Journalists Wanted.

Advertisement

Disqus Comments Loading...
Share

Recent Posts

NSW Registry Manager to Test Land Conveyancing on a Blockchain in Australia

The land registry manager of New South Wales in Australia has partnered with a blockchain technology firm with a view…

2 mins ago

Crypto Exchange Giant Coinbase Opens Office in Ireland

Cryptocurrency exchange Coinbase has opened a new office in Dublin to mark its latest expansion into Ireland as a marked…

47 mins ago

Binance Uganda to Begin Accepting Deposits in Ugandan Shilling, BTC & ETH

Months after announcing the launch of Uganda’s first-ever fiat-crypto exchange, Binance has made another step towards facilitating cryptocurrency trading in…

3 hours ago

Crypto Market Stabilizes as Tether Recovers, Real Bitcoin Price at $6,450

The crypto market has stabilized after a wild 24-hour period triggered by the sudden increase in the price of Bitcoin.…

6 hours ago

DocuSign Will Add Ethereum Blockchain Integration to Verify Signatures

San Francisco based DocuSign has announced the integration of the Ethereum blockchain into its electronic signature and transaction management service.…

9 hours ago

Soaring Inflation Sends Bitcoin Trading Volume to New High in Venezuela

The amount of Venezuelan bolivars being spent to purchase bitcoin has risen to record levels as the South American country…

10 hours ago

This website uses cookies.