Newsletter
Cryptoscout
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • ICO
No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • ICO
No Result
View All Result
Cryptoscout
No Result
View All Result
Home ICO

Signs that BTC is decoupling supports its ‘safe haven’ status

by The Crypto Scout
October 30, 2020
in ICO
0
Signs that BTC is decoupling supports its ‘safe haven’ status
Share on FacebookShare on Twitter


Bitcoin (BTC) has started to decouple from the U.S. stock market index S&P 500 according to crypto statistician Willy Woo. 

First signs of de-coupling behaviour spotted between BTC and stocks.

Buying from an influx of new users provides price support preventing speculators from trading the correlation downwards.

NVTP approximates a valuation for BTC with organic investor velocity on the blockchain. pic.twitter.com/AvilB9cfdD

— Willy Woo (@woonomic) October 29, 2020

Predicting this behavior in late September, he asserted that Bitcoin will break ties with traditional markets due to an influx of new users:

“Bitcoin will decouple from traditional markets soon, but driven by its internal adoption s-curve (think startup style growth) rather than changes in perceptions as a hedging instrument by traditional investors.”

Referring to Network Value to Transaction Ratio (NVT), an indicator Woo introduced in 2017, the analyst said that Bitcoin’s NVT price has shown clear price support despite the S&P falling sharply over recent days.

The NVT can be likened to Bitcoin’s P/E (price to earnings) ratio, however since Bitcoin has no earnings in the literal sense, Woo replaced the P/E values with network value (Bitcoin’s market cap) and daily USD on-chain transaction volume.

Two days ago, Bitcoin’s NVT price (price support) crept into new all-time-highs above $11,000.

Bitcoin’s NVT Price hits ATH. Source: Willy Woo

Woo added that the indicators suggest Bitcoin could begin reclaiming its status as a “safe-haven” asset should stocks continue to fall:

“What this test shows is that if stocks crash, Bitcoin powered by its large adoption s-curve, swallowing ever more capital, will present perfectly good safe haven properties.”

On Oct 26, Morgan Creek Digital co-founder Anthony Pompliano claimed “Bitcoin is the ultimate safe haven” and the market is proving it,” adding that Bitcoin “could not be more uncorrelated” with the stock market.

Not everyone agrees that Bitcoin had any decoupling to do: analyst Scott Melker Tweeted in May that stocks and Bitcoin are “not correlated now, and they weren’t correlated before.”

Early last week, crypto investor Chris Dunn suggested a negative correlation between stocks and BTC had started, prompting Woo to reiterate his stance of Bitcoin as a safe alternative to traditional assets:

“Makes sense that BTC will continue to be correlated in short time frame trading; but not in the longer time frames. BTC is a safe haven, just that ‘risk-on’ (meaning it’s very new) is skewing this fact.”

However, some analysts have suggested that an excessive preoccupation with the correlation between BTC and the S&P 500 could be dangerous. Analyst Michaël van de Poppe said that when things get messy, as they did in March this year, “all correlations tend to go towards 1,” adding:

“Since then, gold, silver & Bitcoin have been resilient for any downwards move and showing strength apart from the equity markets. Don’t pin yourself on those correlations.”





Source link

Related articles

Altcoins rally as analyst warns Bitcoin is in the ‘$50K – $60K twilight zone’

Altcoins rally as analyst warns Bitcoin is in the ‘$50K – $60K twilight zone’

April 22, 2021
How the crypto industry is moving closer to going green

How the crypto industry is moving closer to going green

April 22, 2021
Tags: BTCdecouplinghavensafeSignsstatussupports
Share76Tweet47

Related Posts

Altcoins rally as analyst warns Bitcoin is in the ‘$50K – $60K twilight zone’

Altcoins rally as analyst warns Bitcoin is in the ‘$50K – $60K twilight zone’

by The Crypto Scout
April 22, 2021
0

The price of Bitcoin (BTC) is still stuck in what traders hope will be a short-term downtrend as the...

How the crypto industry is moving closer to going green

How the crypto industry is moving closer to going green

by The Crypto Scout
April 22, 2021
0

It’s as reliable as the changing of the seasons: another year, another Earth Day, and another misguided missive about...

Huobi Group launches 4 crypto funds targeting $100M in assets

Huobi Group launches 4 crypto funds targeting $100M in assets

by The Crypto Scout
April 22, 2021
0

Huobi Technology Holdings — a part of the Huobi Group, which includes leading Seychelles-based cryptocurrency exchange Huobi Global —...

Texas wants to protect privacy elements of blockchain companies, says Blockcap

Texas wants to protect privacy elements of blockchain companies, says Blockcap

by The Crypto Scout
April 22, 2021
0

Crypto mining company Blockcap, which recently announced it would be setting up new offices in Austin, says Texas could...

Jackson, Tennessee follows Miami’s lead to adopt Bitcoin operations

Jackson, Tennessee follows Miami’s lead to adopt Bitcoin operations

by The Crypto Scout
April 22, 2021
0

Jackson, Tennessee is the latest city in the United States moving to adopt Bitcoin (BTC) payments and mining, following...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
A Fund Manager Just Bashed XRP, Bitcoin Cash, and Other Altcoins

A Fund Manager Just Bashed XRP, Bitcoin Cash, and Other Altcoins

October 21, 2020
What We’re Getting Wrong About Druckenmiller and Bitcoin

What We’re Getting Wrong About Druckenmiller and Bitcoin

November 15, 2020
Closing Time for Bitcoin’s Iconic Room 77 – ‘And That’s OK,’ Says Owner

Closing Time for Bitcoin’s Iconic Room 77 – ‘And That’s OK,’ Says Owner

October 20, 2020
3 Reasons Why XRP is Unlikely to Benefit From Ongoing Altcoin Surge

3 Reasons Why XRP is Unlikely to Benefit From Ongoing Altcoin Surge

October 22, 2020
Here’s why Bitcoin will boom in the “biggest overhaul” of finance

Here’s why Bitcoin will boom in the “biggest overhaul” of finance

0
Pantera Capital CEO: Bitcoin (BTC) Could Hit $115k after Halving

Pantera Capital CEO: Bitcoin (BTC) Could Hit $115k after Halving

0
Closing Time for Bitcoin’s Iconic Room 77 – ‘And That’s OK,’ Says Owner

Closing Time for Bitcoin’s Iconic Room 77 – ‘And That’s OK,’ Says Owner

0
India Plans Bitcoin Ban Even as Its Banking System Gradually Collapses

India Plans Bitcoin Ban Even as Its Banking System Gradually Collapses

0
Altcoins rally as analyst warns Bitcoin is in the ‘$50K – $60K twilight zone’

Altcoins rally as analyst warns Bitcoin is in the ‘$50K – $60K twilight zone’

April 22, 2021
How the crypto industry is moving closer to going green

How the crypto industry is moving closer to going green

April 22, 2021
Square says Bitcoin mining is “key to clean energy future”

Square says Bitcoin mining is “key to clean energy future”

April 22, 2021
Huobi Group launches 4 crypto funds targeting $100M in assets

Huobi Group launches 4 crypto funds targeting $100M in assets

April 22, 2021

We have all the latest updated and legitimate information related to Blockchain, Cryptocurrency, latest market rates & trends, prices, new regulations along with every other thing that somehow related to crypto or digital currency market. Our main idea is to provide the kind of news that is original and at the same time, it can prove to be beneficial for our audience.

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • ICO
  • Litecoin
  • Market
  • Regulation

Archives

  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020

Newsletter

  • About Us
  • Privacy Policy
  • Contact Us

© 2020 cryptoscout.io

No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • ICO

© 2020 cryptoscout.io