The reputation of the cryptocurrency Bitcoin shook as it declined in conjunction with the decline in stock and asset markets in the wake of US President Donald Trump's infection with the Corona virus.
According to Arabnet, a report published by Bloomberg stated that the correlation coefficient between Bitcoin and the SP500 index remains direct, meaning that the higher the shares, the higher the price of bitcoin in the market, which is what It undermines a recently promoted hypothesis that Bitcoin has become a safe haven for investors in times of crisis.
and the correlation coefficient in the money markets or what is termed as correlation is the relationship between two variables of investment tools to know the future price trends of each of them.
and Bloomberg's report adds that the 14-day RSI, which is another tool to predict future price movements, for Bitcoin indicates a reading of 45 points, while the index reading for stock markets indicates 51 points, which means that the decline of Bitcoin came at a faster rate than the drop in the stock markets.
The SP500 index has declined by about 6% since the peak of last September, while Bitcoin has lost about 15% since the peak of last August when prices were flying above the levels of 12 thousand dollars per bitcoin.
CoinShares' chief strategist told Bloomberg we need more clarity about the upcoming election cycle and new stimulus plans in order to see stock markets rise again and so does the bitcoin cryptocurrency. / p>
"Bitcoin has remained locked into current levels despite a series of positive news due to the lack of sufficient inflation rates due to the decline in aggregate demand."
We need to see a match between Bitcoin's trend and its safe-haven reputation before we decide.
The decline in Bitcoin came in the midst of the wave of declines that hit the market in yesterday's session after the announcement of Trump's injury with the rise in the volatility index, which is known as an indicator to measure investor concerns on Wall Street , To its highest level in about a month.
The cryptocurrency fell Bitcoin for the fourth day in a row, with a decline in Friday's trading by about 2.1% to levels of $ 10387.
Bitcoin recorded its worst monthly performance since the start of the Corona pandemic last September, with a decline of 8.3%, but it has remained high since the beginning of this year by about 50%, according to Bloomberg data. / p>
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