- “…It has proven to be non-correlated, and I expect that to continue,” Morgan Creek Asset Chief.
- Both the stock market and the cryptocurrency market are trading at their lowest levels this year.
- The downtrend in the markets is likely coincidental.
Some experts and cryptocurrency enthusiast believe that the traditional stock market and Bitcoin price action are somehow correlated. However, Anthony Pompliano, the Morgan creek Digital Asset Manager reckons that these two markets have no correlation. Pompliano was speaking to CNBC in an interview on December 26 and he stated:
“If you look at the correlation between digital assets and the S&P 500 over the last 180 days, it’s at zero. If you look at it compared to the dollar index, it’s near zero. It has proven to be non-correlated, and I expect that to continue.”
On the contrary, both the stock market and the cryptocurrency market are trading at their lowest levels this year. The asset manager maintains that the current relation is more of a psychological one and does not hold water when it comes to credible data.
In addition to that, another study released by Yale showed that the movement in Bitcoin price has very little to do with the traditional market. And that the downtrend in the markets is likely coincidental.
Pompliano also expects the downward spiral of Bitcoin price to progress in the short-term. Meaning that contrary to recent believes of a reversal, Bitcoin has not bottomed out yet.
Bitcoin price technical picture
At the time of press, Bitcoin is changing hands at $3,614.20 following a slight 0.65% rise on the day. King of the assets was rejected above $4,000 opening the door for the slide that heading for $3,500. Buying activities appear to have to have reduced in the days leading to new year celebrations. Besides, the price is trading below the moving averages in the 2-hour range. Similarly, the double cross of the moving averages with the 50 SMA sliding below the 100 SMA means that Bitcoin could continue to correct lower in the short-term.
Read more:
Cryptocurrency market update: Bitcoin miners’ in jitters as Japan’s GMO closes mining software unit
BTC/USD 2-hour chart
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