Bitcoin (BTC) Price Had to Drop 41 Percent to Remain Correlated, Says Bitwise CEO

News
Tue, 03/10/2020 - 06:15
Alex Dovbnya
The price of Bitcoin (BTC) had to drop 41 percent in order to confirm its correlation with the S&P 500, according to Bitwise CEO Hunter Horsley
Cover image via www.youtube.com
Contents

Hunter Horsley, the CEO of Bitwise Invest, has dispelled the myth that Bitcoin (BTC) is correlated to U.S. equities

Horsley tweeted that the 7.6 percent drop that the S&P 500, one of the benchmark stock market indexes, recorded on March 9 would correspond to the BTC price taking a 41 percent nosedive based on the historic volatility of these two assets.  

image by @HHorsley

Related
S&P 500 Looks Like 'Bitcoin Dump' with $3.4 Trln Erased in Days: Analyst

'Black Monday' 

Yesterday, the U.S. equities market had its worst day since the 2008 financial crisis with both the S&P 500 an the Dow being on the cusp of a bear market. The rapid sell-off was caused by a double-whammy of the coronavirus pandemic and collapsing oil prices. 

The S&P 500 plunged more than seven percent after the opening bell, triggering circuit breakers for the first time since their implementation.

The index, which tracks the performance of America's largest companies, failed to rebound throughout the day and closed 7.59 percent lower.  

Related
Bitcoin May Lose Its Mojo Due to Increasing Correlation With Stocks

Can they be compared?  

During this king of mayhem, Bitcoin had a relatively calm day since its price plunged only five percent. This doesn't fit the narrative of the likes of Nouriel Roubini who say that the flagship cryptocurrency that is supposed to act as a safe haven is, in fact, performing worse than risk-on assets

That said, some skeptics didn't buy Horsley's comparison since he didn't take into account those orders that were placed on stock exchanges during the weekend when the market was closed. If they were taken into account, Bitcoin would actually underperform with its 17 percent drop over the past three days.

Subscribe to U.Today on Twitter and get involved in all top daily crypto news, stories and price predictions!

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, can be contacted at alex.dovbnya@u.today.

Top 10 Best Cloud Mining Sites in 2020
TOP 20 Best Bitcoin Trading Bots in 2020

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy