BitCoin finally finds its hold in the market; Indicators going strong
Apr 06, 2018 Posted / 970 Views
Financial analysts all around the world have some excellent news for all the dealers of cryptocurrency, and it is voiced in some sync and cohesiveness.
Bitcoin was a sin wave since last December and early March when the prices fluctuated from $20,000 to $7,000, which is not only HUGE but startling too.
However, financial experts now say that Bitcoin could come out as a potential indicator of the stock market. According to famed fund manager Jeffrey Gundlach who manages as much as $119 million of funds from clients all around the world, this rise and fall in bitcoin process are more than just a mere indicator of events. It’s more than a confirmation too.
He says, “Bitcoin closed at the low of the year last week, SPX (Standard & Poor’s 500 Index) is now at the low of the year this week…Bitcoin keeps leading.”
Popularly known as the “Bond King” of the WallStreet, went on ahead to add to his statement that Bitcoin now is the prime assessor of all the risks associated to the assets and that is was backed by evidence that whatever effects it has on the price, it swings on the assets risks too. Nothing is left untouched, and eventually many of the safer bets are consumed too.
To substantiate his claims, Gundalch noted that equity markets dropped when Bitcoin prices fell. This had also happened when the cryptocurrency fell from its mid-December all-time high of $20,000 to around $6,600 in February before it gained momentum back and reached somewhere about $11,500 in the first week of March. Currently, Bitcoin is evaluated at $7,300 something which is not great.
Gundlach noted that Bitcoin’s price began climbing around mid-September 2017 and the S&P 500 Index also went up. However, Bitcoin began its descent in late December, indicating that “the speculative mania of the social mood had already passed.”
An analysis of this kind is something which has been rare to the market, for not every financial broker has the ability to make such deep observations.
He also noticed that the S&P 500 climber went up and came down, by January 26 and during this time bitcoin was already recovering. And this led the S&P index to fall further.
He added in his statement regarding this, “But as that new high was being made, Bitcoin was back in bear-market mode. Soon after it was tank time again for stocks. It is all tied together, obviously,”
At first, it was him only who let this ideology of BitCoin being the indicator and reference frame of what all happened in the WallStreet and its effects. In his interview to the CNN regarding the same, he said that “That sort of presaged the volatility in the stock market. If stocks are going to take another tumble, I think it would be preceded by a Bitcoin decline. And Bitcoin – while the stock market was having trouble finding its footing – Bitcoin managed to start rallying and advanced, and then the stock market bottomed out.”
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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