HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Strong NYSE Composite, Dow Jones May Give Bitcoin a Boost Into 2020

Altcoins 2019/12/01 21:00 by Nick Chong

As Bitcoin (BTC) has floundered over the past few months, falling by 50% from $14,000 to $7,300, American equities have been performing rather well. Earlier this week, the S&P 500 set an all-time high at 3,150, and the index has gained some 25% in the past year alone — likely one of the strongest years on record for the stock market. These gains have been reflected across the American stock market, meaning for the Dow Jones and the NYSE Composite indices as well, but not for Bitcoin and cryptocurrencies.

Related Reading: Gold Plunges After Dow Records New High; Why Bitcoin May Rise

But it may be about to get better. SentimenTrader, a popular stock market analysis firm mentioned by Bloomberg and the Financial Times, recently noted that the monthly Moving Average Convergence Divergence (MACD) indicators for the Dow Jones and the NYSE have turned positive for the first time in over a year. This, they claim, is “bullish “for stocks on a longer term basis,” as historical precedent shows that positive MACD flips led to rises “100% of the time 6-12 months later.”

Some say that this impending strengths for American equities could provide a boon to the price of Bitcoin.

Related Reading: Crypto Tidbits: Bakkt’s Bitcoin Futures Surge, UpBit Hacked for $50 Million in Ethereum, US Arrests Blockchain Researcher

Bitcoin Could Outperform With Surging Dow, S&P 500

Importantly, it isn’t only rhetoric that Bitcoin performs well when American equities do, as there is evidence that this correlation exists. Per previous reports from NewsBTC, Thomas Lee of Fundstrat Global Advisors recently observed that Bitcoin performs well whenever the S&P 500 is trending higher. To illustrate this, he posted the below chart, which shows that there is somewhat of a correlation forming on a long-term basis.

bitcoin, bitcoin price, s&p 500

Lee touched on this statistic and the whole narrative in a recent interview with CNBC’s Market Lunch segment, during which he quipped that he expects there to be a recovery in the cryptocurrency market heading into 2020.

He specifically said that the surge in the price of American equities, which are now at all-time highs mostly across the board, sets the stage for risk-tolerant investors to add capital to Bitcoin and other markets that may be deemed “risky” from a classical standpoint.

Related Reading: Despite 15% Bounce, Bitcoin Price Still Bearish on Weekly: Analyst
Featured Image from Shutterstock

The post Strong NYSE Composite, Dow Jones May Give Bitcoin a Boost Into 2020 appeared first on NewsBTC.

0 Like(s)



You should also read...

Bitcoin 01/12/19 14:11 by Christine Vasileva
US Stock Markets to Have a Slow 2020, Will Investors Turn to Bitcoin and Crypto?
The US stock market rally in 2019 surprised skeptics, as indexes continued to surge despite underwhelming performance and setbacks for the FAANG stocks. But Wall Street pundits are predicting that 202...
Read More
Bitcoin 13/04/20 16:42 by Nick Chong
Could Goldman Sachs’ Cheery S&P 500 Projections Boost Bitcoin Higher?
Since the lows that were in March, both Bitcoin and stocks across the world have mounted an objectively impressive comeback. The cryptocurrency managed to gain 100% from its $3,700 bottom last week, a...
Read More
Bitcoin 13/05/20 00:30 by Nick Chong
Bearish for Bitcoin: S&P 500 Flashes Fundamental And Technical Warning Signs
Since the lows that were experienced in March, both Bitcoin and the S&P 500 have been on a steep recovery. The leading cryptocurrency peaked at over 170% from the price of the March lows, while th...
Read More
Altcoins 15/05/20 19:30 by Tony Spilotro
Strong Correlation Between Bitcoin and Stock Market May Finally Be Over
The tight correlation between Bitcoin and the stock market has been deteriorating in recent days. And following the latest price action, the correlation may finally be over and Bitcoin can break free ...
Read More
Bitcoin 07/06/20 22:00 by Tony Spilotro
Why Nasdaq Setting A New All Time Could Be The Boost Bitcoin Needs
Bitcoin price continues to fail to breach above $10,000 and hold. The last time the cryptocurrency held for consecutive daily closes above the key level, was in February 2020 before the Black Thursday...
Read More