- “…It has proven to be non-correlated, and I expect that to continue,” Morgan Creek Asset Chief.
- Both the stock market and the cryptocurrency market are trading at their lowest levels this year.
- The downtrend in the markets is likely coincidental.
Some experts and cryptocurrency enthusiast believe that the traditional stock market and Bitcoin price action are somehow correlated. However, Anthony Pompliano, the Morgan creek Digital Asset Manager reckons that these two markets have no correlation. Pompliano was speaking to CNBC in an interview on December 26 and he stated:
“If you look at the correlation between digital assets and the S&P 500 over the last 180 days, it’s at zero. If you look at it compared to the dollar index, it’s near zero. It has proven to be non-correlated, and I expect that to continue.”
On the contrary, both the stock market and the cryptocurrency market are trading at their lowest levels this year. The asset manager maintains that the current relation is more of a psychological one and does not hold water when it comes to credible data.
In addition to that, another study released by Yale showed that the movement in Bitcoin price has very little to do with the traditional market. And that the downtrend in the markets is likely coincidental.
Pompliano also expects the downward spiral of Bitcoin price to progress in the short-term. Meaning that contrary to recent believes of a reversal, Bitcoin has not bottomed out yet.
Bitcoin price technical picture
At the time of press, Bitcoin is changing hands at $3,614.20 following a slight 0.65% rise on the day. King of the assets was rejected above $4,000 opening the door for the slide that heading for $3,500. Buying activities appear to have to have reduced in the days leading to new year celebrations. Besides, the price is trading below the moving averages in the 2-hour range. Similarly, the double cross of the moving averages with the 50 SMA sliding below the 100 SMA means that Bitcoin could continue to correct lower in the short-term.
Read more:
Cryptocurrency market update: Bitcoin miners’ in jitters as Japan’s GMO closes mining software unit
BTC/USD 2-hour chart
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.