|
December 05, 2020, 05:30:47 AM |
|
I think, since the coronavirus outbreak, the correlation between Bitcoin and the equities market has increased. For instance, on the 12th of March, the price of Bitcoin fell below $4,000 after the S&P Index in the USA saw a sharp decrease. The reason for this was because there was a sudden flight to liquidity, and so, a lot of investors had margin calls in Equity that had to be covered by liquidating other assets like Bitcoins into cash - to meet those margin calls elsewhere. Though the price has now recovered to around $7,000, it will probably be a while before Bitcoin prices soar up again.
|