Bitcoin escapes the cross of death again! IMF: synchronization with US commodities threatens financial security

币圈子 view 34161 2022-1-13 16:08
share to
Scan QR code with WeChat


The Fed was quick to lower the value of Bitcoin, and the International Monetary Fund (IMF) said on Tuesday 11 that Bitcoin and US commodities were still rising, leading to financial risk.

According to IMF statistics, the correlation coefficient of Bitcoin and US stocks fell from 0.01 between 2017 and 2019 to 0.36 by 2020. “The growing relationship between the two assets shows that there is a spread of depression which could make the financial market unstable. "

The 100-day bond between Bitcoin (BTC) and the S&P 500 was 0.49 on Tuesday, the highest so far in July 2020 and the highest in a decade, according to trading information from the Dow Jones. 60-day correlation coefficient of two up to 0.54, the highest since at least 2010 for all available data.

Additionally, the correlation between Bitcoin and the tech-driven Nasdaq Composite Index was 0.47 on Friday, the highest since October 2020.

The correlation coefficient can be known by the relationship between the market value of different assets, and the difference is -1.00 to 1.00. The positive coefficient means that the two methods are mutually exclusive, the higher value indicates a better relationship, and the negative coefficient indicates the difference.

The correlation coefficient between Bitcoin and the S&P 500 and the Nasdaq Composite has been good from February 2020 until now, indicating a merger.

Indeed, since early 2021, the correlation coefficient between Bitcoin and the S&P 500 or the Nasdaq is higher than that of Bitcoin and gold. Meanwhile, the two anti-inflation assets, Bitcoin and Gold, have repeatedly turned negative.

Bitcoin has recently seen massive sell-off (50-day price falling below its 200-day moving average) and although it did come back on Tuesday, this week seems unlikely.

Juthica Chou, head of Kraken's OTC options trading division, said the story of the Bitcoin cross-tracking mix is ​​dead and the roots remain strong.


Scan QR code with WeChat


Previous: Web3.0 era: open, confidentiality, co-construction Next: Understanding Decentralized and Perpetual Perpetual Contract Protocols: Solving Losses Using Virtualized Market Makers