Sep 15, 2020
Recently, most of the financial indexes were losing their value. Since those indexes are the indicator of the stock market, it means that the market was in the short-term downfall. Many companies are affected by this fall. For instance, Tesla lost its value of about 21%, and it affected Elon Musk too, and his net worth fell by $16.3 bn. Tesla’s stock price was increasing with the expectation of inclusion in the S&P%500, and delay caused prices to drop.
Today markets opened positively. Most of the indexes are showing gains in this trading day, and it did not pass by bitcoin. Correlation between BTC and the US stock market shows that they are moving likewise. This correlation can be proof that bitcoin gains acceptance from the crowd. As it gets popular, it closes the gap with the market.
Traders mostly trade with the expectation that it will go up or down. As the market gets on its legs, traders will be active. The increasing correlation of bitcoin with the market will affect the choices of traders. Also, there is some news that can secure the value increase in bitcoin, such as Russia thinking about making the blockchain-based e-voting system, and there are some Swiss laws that open new horizons for cryptocurrency. At the same time, traders were skeptical about further fall in price for bitcoin, and recent fluctuation around $10k can explain that hesitation. So, a more suitable environment is developing for traders.