Alapt

Cryptocurrency news

Ronnie Moas: "bitcoin's correlation with the stock market indicates a decline in BTC to $9,000»

Ronnie Moas: “bitcoin’s correlation with the stock market indicates a decline in BTC to $9,000»

According to stock analyst Ronnie Moas of Endpoint Research, bitcoin may fall below $9,000, as the correlation between BTC and the stock market is very high right now.

A drop below $9,000 can happen if the us securities indexes fall by another 10-20%, he believes
Ronnie Moas. For September 23, the rate of the first cryptocurrency lost about 2%, falling to $10,300. On the same day, the Dow Jones fell 1.9% and the Nasdaq Composite lost 3%.

A source: Tradingview

The stock market is falling due to the strengthening of the dollar. The DXY index, which reflects the value of the dollar against a basket of other currencies, is at its highest level in 8 weeks. But, according to the former Chairman of Morgan Stanley, Stephen Roach, by the end of the year, the USD will lose its won positions.

As noted
Michael Hagelstrom, the correlation of the bitcoin exchange rate with the stock market is not related to fundamental factors, but to the liquidity of the first cryptocurrency and the margin positions of traders. They sell BTC to cover losses on stock market positions.

However, analysts believe that in the long term, bitcoin will rush up. This is facilitated by the continuing program of stimulating the economy on the part of States.

A recent study by Delphi Digital says
that in 2020, there are factors for a more stable growth of bitcoin than in previous years.