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Bitcoin (BTC) Price Could Rebound with U.S. Stock Market: Trader

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Tue, 03/17/2020 - 07:42
Alex Dovbnya
With stock futures rising, it seems to be a good day to be bullish on Bitcoin (BTC), according to this trader
Cover image via www.shutterstock.com
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After its worst day since the infamous Black Monday crash in 1987, the U.S. stock market is set to bounce back big time with the S&P 500 futures spiking four percent. According to trader Satoshi Flipper, this move could be bullish for Bitcoin, given its recent correlation with equities.

Related
Bitcoin (BTC) Price Can Still Reach $100,000, Stock-to-Flow Model Remains Valid: Analyst

Global markets are in a freefall 

The Dow index lost 3,000 basic points on Monday despite the Federal Reserve trying to assuage investors by cutting interest rates to zero

The sell-off intensified during the last trading hour when US President Donald Trump was holding another press conference on the coronavirus. The POTUS mentioned that the US could be on the brink of a recession, which sent all major averages into meltdown mode.

European stocks also closed in the red with U.K.’s FTSE 100 plunging by nearly five percent.    

Related
Gold (XAU) Loses Eight Bitcoin (BTC) Market Caps During Four-Day Rout

Bitcoin is tied to stocks

While Bitcoin is commonly referred to as 'digital gold,' it continues to trade hand in hand with the U.S. stock market. Notably, both Tesla and Bitcoin, which were often compared by analysts in January, are now down roughly 50 percent from their yearly highs. 

Anthony Pompliano of Morgan Creek Digital recently noted that Bitcoin was flat during the biggest stock market crash since 1987, but some rightfully pointed out that it had already been priced in because of futures.

The real question is whether Bitcoin decouples from the equities market after this liquidity squeeze.    

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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