- Bitcoin’s correlation with Asian stock markets has increased, according to IMF officials.
- Asian markets, India, Vietnam and Thailand have embraced cryptocurrencies and Bitcoin adoption continued to grow.
- Bitcoin price is ready to target the $60,000 level, analysts identify three bullish signals in the BTC chart.
Bitcoin price and performance of Asian stock markets are correlated, argued IMF officials. Several countries in Asia have adopted Bitcoin, Ethereum and cryptocurrencies, despite regulatory concerns. The rising risks of Bitcoin usage make it a sensitive environment for crypto in Asia.
Also read: Bitcoin to $300,000 or $10,000? JP Morgan boss warns of something worse than recession
Bitcoin’s correlation with Asian stock markets increased
Colin Wu, a Chinese journalist, reported that International Monetary Fund (IMF) officials observed the correlation between the performance of Asian stock markets and digital assets such as Bitcoin has increased significantly.
Wu explains that Asian countries like India, Vietnam and Thailand have adopted and embraced Bitcoin and cryptocurrencies. There is a spike in individual and institutional adoption of Bitcoin despite regulatory concerns.
Despite governments and law enforcement agencies across Asian countries being aware of the rising risks posed by Bitcoin and remain sensitive to it, Bitcoin’s correlation with Asian stocks is real and IMF officials acknowledged the same.
IMF believes that Bitcoin’s fast-paced adoption in Asian countries raises financial stability concerns. Prior to the covid-19 pandemic, cryptocurrencies seemed insulated from the financial system and Bitcoin did not show signs of correlation with Asian equity markets. However, post-pandemic this scenario changed.
Asia’s crypto trade volume drives the global market
Asian investors piled into crypto during the pandemic and this has increased the correlation between the performance of the region’s equity markets and Bitcoin. The returns and volatility correlation between Bitcoin and Asian equity markets has increased significantly since 2020.
Correlation between Bitcoin and Asian equity markets
IMF officials identified three key drivers of Bitcoin’s Asian connection: growing acceptance of crypto-related platforms, investment vehicles in the stock market and OTC that have higher crypto adoption, and acceptance by retail and institutional investors.
While the IMF argues a strong case for Asian stock markets fueling Bitcoin’s next move, analysts present a bullish outlook on the asset.
Bitcoin price is prepared for rally to $60,000
El Crypto Prof, a pseudonymous crypto analyst, is bullish on Bitcoin. The analyst has identified three bullish signals in the Bitcoin price chart similar to 2018-19. MACD, the trend-following momentum indicator reveals classic divergence.
Comparing Bitcoin price chart to 2018-19
The analyst identified an ABC correction in the Bitcoin price chart. An ABC correction is a measured move down chart pattern nested inside a measured move up. This is consistent with Bitcoin’s set up in 2018-19. The analyst expects a Bitcoin price rally to $60,000.
FXStreet analysts are on the same page and argue that sellers have taken a step back. Bitcoin bulls have stepped in and the asset’s price is ready to recover from its slump. For price targets and more information, check the video below:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin, Ethereum prices struggle after mixed US NFP data
BTC and ETH prices experienced a temporary pullback as crypto market participants reacted to the news of the US NFP data release for May. Similar to the situation in April, the number of Nonfarm Payrolls added far exceeded the market’s expectations.
Solana: A break above $26.30 would spell doom for bears
SOL price has been trading with a bullish bias after an explosive breakout on December 30. However, because of volatility and the gloom in the broader crypto market, SOL has been unable to break above a key hurdle at $26.30, causing the price to trade sideways.
Bitcoin Weekly Forecast: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.
China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols
Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.