Meme Stocks Sucks Crypto Life – Should You Buy BTC Dips?

Meme seems increasingly linked to stocks and cryptocurrencies. As the weekend approaches, it seems like we can be sure of one thing: the price of crypto assets will drop. In fact, hypervolability has already begun, bitcoin is currently trading at $ 36,000 from the $ 40,000 that was minted just two days ago. The correlation between crypto and the stock market is a hotly debated topic. The negative correlation, seen as an enviable feature of Bitcoin, makes it an ideal diversification in an equity-rich investment portfolio. The direction of travel and the focus of the debate has shifted to reflect the positive correlation between crypto and at least some parts of the exchange. How does Bitcoin correlate with DBS's S&P 500? In a report published earlier this week, correlation data between crypto and US stocks pulled strongly, if not excessively. However, when you look at specific sectors, namely technology stocks, the correlations are more pronounced. Regarding Bitcoin and the S&P 500, here is the most striking conclusion: “ Our correlation analysis shows that Bitcoin and the S&P 500 show an increased positive correlation of 0.26 against only 0.19 at normal times, after an extreme move. conditions. . This suggests that a broader stock sentiment over a transient period (60 hours) may be more dependent on sentiment in Bitcoin markets after an unusually large move. In other words, when the crypto market goes into volatility binge, the bleeding of the S&P 500 becomes more pronounced as shown in the chart below – there is a positive correlation of 0.26 after the moves. extremes: courtesy of DBS And for context, Bitcoin's US dollar index (DXY – dollar measured against a basket of six other major internationally traded currencies: courtesy of DBS). DXY is negative (-0.12)

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