Crypto News

What threatens bitcoin a new drop in the S&P 500 index?

Over the past few months in the expert community, many drew attention to the increased correlation between the bitcoin price and the American stock indicator S&P 500.

It was reported that the interdependence between the two assets has reached two-year high. In March amid falling US stock market we saw bitcoin in less than a day fell to an annual minimum.

Then there has been a recovery in business activity due to the policy of the American government in supporting population and business.

The largest cryptocurrency has also started to strengthen against the backdrop of the return of capital to the industry.

Began to sound predictions that if re-start the drop in the S&P 500 index, it is inevitable BTC will also weaken.

Of rapid correction of the stock indicator has recently stated investment officer at Leuthold Group’s Doug Ramsey. He predicted that the fall of the S&P 500 will reach 32%. Recovery financial measure is temporary, and soon the negative trend in return, the expert believes.

If to take as a basis the forecast of a top Manager of the Leuthold Group, we can assume that the weakening of the exchange rate of bitcoin will occur after halving (reducing rewards for miners).

Although previously, many analysts, however, were systematically paid attention to the positive value of Kalinga, which, in their opinion, will only increase demand for the cryptocurrency.

On Friday trades on the US stock market ended with a growth indicator, the S&P 500 by almost 2% to $2 929,8 points. Note that in the same day, bitcoin was able to break above $10 000, but on Sunday the positions of the coins declined sharply.

Source:

coinspot.io

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