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Bitcoin May Lose Its Mojo Due to Increasing Correlation With Stocks

Wed, 10/17/2018 - 06:21
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Alex Dovbnya
These are the biggest events of Q4 2018 that will create a think tank of the industry's most prominent leaders
Bitcoin May Lose Its Mojo Due to Increasing Correlation With Stocks
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After the recent stock market crash, Bitcoin and other cryptocurrencies headed in a similar direction, which prompted many speculations that there is a connection between them. A recent Forbes study tried to determine whether stocks and Bitcoin are indeed correlated, and how it may influence the crypto industry.

Morgan Creek CEO Predicts Bitcoin Will Outperform US Stocks

No long-term correlation

In its in-depth analysis, BitBull Capital CEO Joe DiPasquale states that timing is the key factor. Stocks and cryptocurrencies, he concludes, can only move in tandem in the short-term. Investors may do sporadic decisions due to some major events that are defining the current market sentiment.

Starting from 2015, there was no clear correlation between S&P 500 and Bitcoin, so it is safe to say that the traditional and digital markets are not related in the long term.


Things are about to change

Notably, DiPasquale claims that this correlation may indeed become visible due to an ongoing influx of institutional investors who normally deal with stocks and bonds. While this is an indicator that the ‘Wild West’ cryptocurrency market is maturing, it could also make cryptocurrencies less appealing to investors. Bitcoin’s constant price fluctuations have always been the talking point of crypto critics, but some experts also claim that the king of crypto is gradually becoming boring. As U.Today reported earlier, Bitcoin volatility has recently hit a new low.

New York Stock Exchange to Offer Bitcoin “Swap” Contracts

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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