Bitcoin Drops Back Below $10k
Someone the other day told me there's no evidence bitcoin's price tracks, predicts, or follows equities. My observation is that it does, it's unmistakable. Again, so far in my opinion it is not a form of digital gold.
For the most part it has a inverse relationship with equities, when fear strikes over long term gold spikes. It will be interesting to see if this holds up, you never know it might one day, but right now people pull money out of blockchain when markets turn down, not quite trusting it with their wealth like they do commodities like precious metals.
Also why I believe having them backed by commodities will strengthen their appeal during downward trends in the market.
Source :
https://www.zerohedge.com/news/2018-02-22/bitcoin-drops-back-below-10k-catches-down-nasdaq
thank you !
Bitcoin has dropped on formation of bearish divergence and I am seeing bullish divergence forming so there will be a short bull run that will take it to 10500 quickly.
this also effect steem and sbd very badly
SBD is supposed to be $1 USD anyway. I have a difficult time understanding why people see it as an investment. It was supposed to be a tool to park your assets to negate the Steem/USD or another crypto/USD risk. It's crazy this asset is so much above $1 USD at this moment. My hunch is that people are confusing it with Steem.
Price fluctuations in the Bitcoin spot rate on the Bitcoin exchanges is driven by many factors. Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX). Volatility in Bitcoin does not yet have a generally accepted index since cryptocurrency as an asset class is still in its nascent stages, but we do know that Bitcoin is capable of volatility in the form of 10x changes in price versus the U.S. dollar, in a relatively short period of time (See the Investopedia Bitcoin Center for current updates on the price of bitcoin).
Your chart and your hypothesis don't match each other. Half of your chart shows positive correlation, the other half no correlation. Only today's prices show some negative correlation.