Bitcoin remains at the $20,000 mark as the stock market pulls back and closes in the red for September, some analysts suggest this is because the relationship between the crypto market and the stock market has been weakening for some time and it could mean the beginning of a new era for financial markets. Undoubtedly, this is news that arouses the interest of investors in the crypto market because precisely Bitcoin and cryptocurrencies have presented a totally opposite approach to that offered by traditional finance. But… Is Bitcoin really decoupling from the stock market or is it just a coincidence?
The stock market registered its worst monthly fall in 20 years, while Bitcoin resists
Although the crypto market has shown significant fluctuations in the month of September, Bitcoin receives quite stable October compared to traditional markets that have shown a significant dropthis being a surprise because in general, the ninth month of the year is usually the lowest in almost all sectors of the economy.
“Bitcoin has been remarkably resilient in recent weeks despite the stock market losing trillions in value, I have no idea if this is the bottom but there has been a curious decoupling”.Cameron Winklevoss
Gemini co-founder
What have been the most important factors?
A major factor in the decoupling of the crypto market from the forex market in recent days has been the historical fall of the pound sterling against the dollar on September 25, reaching a minimum of $1.03 not seen since 1985, after the English government unveiled a massive tax cut budget that has prompted people to take refuge in Bitcoin. And of course other important factors like Russia’s war with Ukraine, showing the usefulness of cryptocurrencies to facilitate cross-border payments and a fall of the Euro against the dollar which without a doubt shows that people may be using the crypto market or Bitcoin specifically to protect the value of their money.
To end
Therefore, coming to an accurate conclusion of the breakup of the crypto market’s relationship with the stock market is quite fuzzy and daring at the moment, due to the fact that the events that have occurred in recent months can clarify what may be due to a causal event resulting from other external events that directly influence both financial markets.
Rate this news!
0 / 5 Number of votes: 1 Your vote on this news:
