Once again, the crypto market is in an upswing. The more I look, the more it seems that Bitcoin and the other cryptos are beginning to find their place among the other markets.
As we know, crypto is an exciting new asset class. Until now, it has been very segregated from the rest of the markets, but that’s now changing at a rapid pace.
In 2017, we saw bitcoin as a high-risk asset correlating with the stocks, which is traditionally a high-risk market. Here are Bitcoin and the Dow Jones over the course of last year.
At the beginning of this year, there was a sharp correction in both the stock markets and the cryptos. Now that that dynamic has played out, it seems that the US Dollar is now taking center stage.
If you’re still unconvinced that the USD and BTC are doing a little dance together, take a look at this graph here of the US Dollar Index and Bitcoin over the last two months. With the exception of July 17th when both of them rose together, their momentum of travel have been mirrored.
This kind of behaviour is typical of commodities. As the buck falls, it takes more Dollars to buy a barrel of oil or an ounce of gold and vice versa.
My suspicion here is that as the Dollar dominates the markets people are placing more faith in it over bitcoin and of course, vice versa when the Dollar falls.
Please note: All data, figures & graphs are valid as of August 28th. All trading carries risk. Only risk capital you can afford to lose.
Traditional Markets
Fresh optimism has entered the markets with the announcement that…
It was touch and go there for a bit but it seems that Trump has now signed a 16 year deal with Mexico, which could spell the end of NAFTA. The new deal will also see the end of new cars coming to the USA from China through Mexico.
The best part is that Justin Trudeau now has the option to join in the fun as well.
The stock markets were doing great yesterday with fresh highs in many places. Today they’re simply off the hook, especially in the tech sector.
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