Some crypto experts and enthusiasts believe that the behavior of the traditional stock market has a correlation with the price of Bitcoin. However, Anthony Pompiano, head of the Morgan Creek Digital Asset, believes that these two markets have no correlation.
In an interview with CNBC, Pompiano said the following:
If you look at the correlation between digital assets and the S & P 500 over the last 180 days, it will be zero. If you look at the correlation with the dollar index, it is also close to zero. Markets were not correlated, and I expect that this will continue.
It is worth noting that now both the stock and cryptocurrency markets are trading at their lowest levels this year. But Pompiano argues that the current relationship is more psychological and not supported by reliable data.
In addition to this, another study published by Yale University showed that the change in the price of Bitcoin has little to do with the traditional market. And that the downtrend in the two markets is most likely random.
Pompiano is also expecting a bitcoin price decline in the short term. This means that the first digital currency has not yet reached the bottom.
At the moment, Bitcoin is trading at $ 3,669. BTC price is trading below moving averages in the 2-hour range. It is possible that Bitcoin will continue to decline in the short term.
And what do you think about this? Leave your comments below!
