BTC was strongly correlated to equities for long periods of time
Most noticeably, from the beginning of COVID until the LUNA collapse the correlation was almost constantly close to 1.
Recently, BTC seems to decouple from equities again and track GOLD more closely.
The Dollar correlation help you anticipate the movement of correlated pair including BTC/USD XAU/USD and any other USD pair
To see this chart probably copy link
Trend:
As BTC becomes less volatile with time due to its increased market cap, long term, fundaments for BTC get much more stronger. It's a fight between FIAT and BTC (opposite correlation)
Medium term, the trend is in favor of the dollar and this won't change until they both reverse their trends (lines crossing in the chart). Remember, the Trend is your friend....
By charting the growth rates of both the NASDAQ US TECH 100 and Bitcoin, it clearly shows a recent decline against BTC. This decline may also show the recent correlation Bitcoin has had with the NASDAQ, as the closer it gets to 0, the more correlated they are. It has broken an important trend, which is in favor of the growth rate for BTC. IMO this shows the...
DXY is inverse correlate with BTC price.
When the $ is crashing (or slowly grinding) the BTC price is going parabolic (or performing well).
The assets that have a high risk (crypto) are not performing very well when the $ index is rising.
Best strategy now is to be patience and zoom out.
Even if the recession is confirmed, we'll have the best buying...
DXY just broke to the upside out of a bull flag and did a S/R flip. This is correlated to the FED news last week and last week.
BTC broke to the downside when the FED news came out.
I have my buy zones no matter the outcome because as an investor I am focusing on projects to disrupt the world.
As a investor I am focusing on the long term 2024-2030.
But it is...
Ethereum Classic vs S&P in the recent crash. Note the correlation in the major plunges. ETC has faired relatively well and recently has even outperformed ETH and BTC. Will be interesting how crypto madness in the coming months impacts that.
