BTC looks set to make further gains amid mixed action in the crypto markets.
Having hit a four-day high of $8,621.27 yesterday, CoinDesk’s Bitcoin Price Index (BPI) fell to $7,754.67 at 05:29 UTC today. As of writing, prices had bounced back to $8,284. The cryptocurrency has depreciated by 0.4 percent in the last 24 hours, according to data source CoinMarketCap.
Meanwhile, bitcoin (BTC) offshoot bitcoin cash has strengthened by 25 percent in the last 24 hours, while Ripple’s XRP token is reporting a 3 percent rise. The losing side includes names like Ethereum’s ether token, Cardano, Stellar and NEO, which are all showing slight dips.
Bitcoin’s retreat from $8621.27 to $7,754 coincided with a 1000 point drop in the Dow Jones Industrial Average (DJIA), reportedly due to a rise in U.S. bond yields and fears of higher inflation.
Reports are doing the rounds that the 90-day correlation between the daily percent returns of the cryptocurrency and the S&P 500 has jumped to 33 percent – the highest since January 2016.
Though this is up for debate, BTC’s lackluster price action during the recent bout of equity market sell-off may discredit the theory often put forward that the cryptocurrency is a new safe haven asset like gold, the Swiss franc and treasuries.
So, for the time being, bitcoin and cryptocurrencies in general are unlikely to receive a shot in the arm due to instability in other markets.
Yet, bitcoin often confounds expectations, and the technical chart indicates scope for a rise to $9,000 over the weekend…