The opinion follows a JP Morgan report where analysts treat Bitcoin instead to gold among millennials. The study expects the cryptocurrency price to increase by 300 percent in the next several years.
Bitcoin correlation with the Wall Street indexes and the US Dollar Index.
An overnight attempt to crash Bitcoin alongside the US stock market met with intense resistance as the cryptocurrency bounced back .
“BTC is currently above where it was 24 hours ago, even though the Dow Jones fell 640 points now. That is impressive, particularly to those who (mistakenly) thought the two asset classes were correlated. Year-to-date, the US stock market is negative. BTC is +80%.”
The US stock market suffered pain as investors assessed the growing number of coronavirus cases in the country. The infections reached an all-time large of 68,767 on Monday. Additionally, scientists warned that another way is due amid the coming winter season.
Ronnie Moas, the founder of Standpoint Research, noted:
That celebration explains Bitcoin’s ability to hold $10,300 because its interim support amid unsupportive fundamentals.
Spot gold recovers on the line of Bitcoin after witnessing an early morning decline Monday. Source: XAUUSD on TradingView.com
Analysts believe no bundle will come up before the November 3 presidential election. That explains why investors are seeking safety outside equities.
Interestingly, the short downside attempt from the Bitcoin market appeared nearly in sync with a similar sell-off across the US stock market. The Dow Jones Industrial Average plunged 650 points, or 2.3 percent, logging its worst one-day decline since September 3, led by a fall in leisure and travel stocks.
The BTC/USD exchange rate dropped $465, or 3.51 percent, after the New York opening bell Monday. The pair dropped to as low as $12,785, only to find a considerably higher buying sentiment. Because of this, BTC/USD rebounded almost immediately after touching the stated local bottom, climbing back over $13,000 to recover the level as support.
Bitcoin and the US stock market could survive the first round of lockdowns due to the US government’s $3 trillion fiscal injections into the economy. Nevertheless, the situation is direr in current times. The first stimulus package stands dried, and the second one remains stuck amid a political battle between the Democrats and the Republicans in the US Congress.
Meanwhile, the benchmark S&P 500 and the tech-savvy Nasdaq Composite fell 1.9 percent and 1.6 percent, respectively. Collectively, all three indexes were down more than 5% from their record peaks earlier this season.
The cryptocurrency traded more in line with gold, a traditional rival asset, than with the risky stocks, showing that investors are starting to explore its safe-haven characteristics.
That’s increasing worries about tighter lockdown restrictions and their impact on an already-suffering US economy.