S&P 500 and Bitcoin, different twins

S&P 500 and Bitcoin, different twins

while the price Bitcoin and the price of the S&P 500 They have mostly been linked in recent years, now it is likely that they will continue to be associated with hitting bottom as well as rebooting.

S&P 500 and Bitcoin: Time to ‘Buy the Dip’?

Looming on the horizon is the so-called unchanged binge-watching among analysts during a bear market: the constant search for a bottom always prompts a portion of investors to call inflated “buy the dip”, especially at certain stages, which usually coincide with the beginning of a bear market and the end of market patience.

Calling the warning “buy the dip” at the beginning of a bear market is a kind of warning, as one would think that at that point the bottom is far away.

For some time people even forget the mantra feelings He repeats the fateful phrase, that is when the market drop is recorded quite often.

Obviously, the bottom of a bear market is not determined by sentiment, or at least not entirely. Other things include fundamentals and data compatibility that can shed light on it, although the fact remains that unlike statistical data that can give an indication, certainty often remains a distant dream.

trading in Cryptocurrency market It is dropping very quickly, just over a year after the start of this downward phase Calls to “Buy the dip” they come back.

As is often the case, the bottom will not come when it is welcomed, but will only be discovered by being alive.

S&P 500 Index Analysis

In the last closure, the file Standard & Poor’s 500 He gave the slightest sign by touch $3655.04Its worst result since 2020.

Analysts had expected a drop, but that wasn’t surprising, let alone one session.

Meanwhile, Bitcoin sees $19,091 and many analysts see digital gold’s slide as far from halting.

Give some expectations Bitcoin At $12,000, but there are some that even point to $8,000, evoking value far in time.

In short, once again, the S&P 500 and Bitcoin share a common destiny. According to some, this is also due to the fact that, being the most important indicator of the largest stock exchange in the world (Wall Street), the former and most capitalized cryptocurrency is somewhat as head of the pack by recording the biggest losses in the bear phase and the strongest movements in the bull phase.

Gray gradient bitcoin box accumulates

While classic finance and cryptocurrencies continue their downward trajectory, investment funds are no exception, especially those linked to Bitcoin as it is the most capitalized currency.

The grayscale The Bitcoin Trust (OTCMKTS: GBTC) is the longest-running Bitcoin (BTC) trust and one of the most popular, and it’s proven to be no exception by throwing out not-so-good numbers.

This bitcoin fund recently hit a record low of 35.18% As for spot bitcoin prices this week, GBTC spot discount has been in the red for 577 days. Essentially, earnings have not been matched since February 26, 2021.

Currently, the pre-market value of the GBTC Fund is $11.20 and according to the Securities and Exchange Commission (SEC), there are 643,572 BTC owned by the trust which is equivalent to 3.065% of the total Bitcoin supply (21 million units).

It is widely believed that the fund’s poor performance should be underlined by the fact that there are many funds on exchanges around the world, and although Grayscale tried hard to get GBTC accepted as an ETF (Exchange Traded Fund), it failed to do so. Bring the result home.

However, the game is not over yet in the wake of the recent rejection by the Securities and Exchange Commission as Grayscale sued the SEC, which will have to respond to its decision.

Bob Lucasa well-known American businessman, discusses the status of GBTC:

“Bitcoin’s grayscale discount extended its record 35% at the point of dump in October 2020, but if institutions are going to drop BTC in the coming months to a lower level in their teens, then this [is] good choice.

They must be willing to hold [the] The point at which the option to redeem the value opens.

However, it should be limited to the opponent.”

according to Tom Mitchellhill:

‘Who would think exposure to [bitcoin] Via GBTC was a good idea in the first place?

They literally sell it at 36% off and the market still refuses to touch it.”

“Some of us talked about needing to see $8-12,000 in BTC before we can pull back and get a new bull.” [in progress]. It still does not exist yet. My company has set this goal for about a year+. Oh, and the GBTC discount is also a problem.”

#Bitcoin #twins

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