Bitcoin price correlation with gold falls by 20%: 5 things to know this week
Bitcoin (BTC) starts a new week at the top end of its new price range near USD 12,000. Will the market finally break through this week?
Cointelegraph takes a look at five things to consider to see where Bitcoin is headed in the coming days.
The S&P 500 is approaching its all-time highs… again
Unlike the previous weeks, macro-markets and their impact on Bitcoin are back in focus on Monday.
China is leading the way, with its stocks rising to almost their highest levels in two years following news that the People’s Bank of China, or PBoC, is planning to ease monetary policy.
The Shanghai Composite Index rose 2.3% on the day, with year-to-date gains of 13% despite the coronavirus turmoil.
The S&P 500 is already up more than 50% from its March lows, and Goldman Sachs analysts have revised their year-end forecast upward. The target is now 3,600 points, not 3,000, a new record.
Even at the time of publication, the index was only 14 points away from the all-time high it had reached in February before the coronavirus attacked.
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„As recent months have shown, stock prices depend not only on the future flow of expected earnings, but on the rate of discount of those earnings to current value,“ Bloomberg quoted Goldman’s David Kostin in a Friday note.
„Looking ahead, a declining equity risk premium will outpace rising bond yields, and combined with our above-consensus EPS forecast, it will raise the S&P 500 index to 3,600 by year-end.
The shares previously exerted a significant influence on Bitcoin, with their S&P 500 correlation already at 95%. As reported by Cointelegraph, despite the gold acquisition in recent weeks, analysts still believe that a dramatic shift in stocks would be reflected in Bitcoin as well, given the recent correlation with historical highs.
Bitcoin’s correlation with gold has dropped since gold lost its USD 2,000 support level from 68% to 48% in August, according to the data.
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