Bitcoin (BTC) Stable During S&P 500 Pullback
$BTCUSD, $SPY, $DIA, $GLD
Bitcoin (BTC) known for giving retail investors heart palpitations was calm over the past week, as the S&P 500 pulled back about 7% so far this month.
Bitcoin was up 1% on the week, as of Friday afternoon, according to data, and stayed in the $6,500 range without much focus.
The DJIA finished down almost 3% on the week.
Fears of an ongoing trade dispute, and rising interest rates is being blamed for the sell off.
Earlier in October, uncertainty around stock markets fed into cryptocurrencies as the DJIA fell as much as 1,300 points in 2 days, its biggest sell-off since February. Bitcoin fell 6%, as the total cryptocurrencies market lost $18-B of its value.
Bitcoin has lost more than 65% of its value since nearing a high of $20,000 last December, when retail investors were pouring cash into the asset class.
Bitcoin is still up 14% Y-Y, and was trading near $6,469.48 Saturday as of this writing.
Its volatility has made it almost impossible to use as a viable payment method. Instead, Bitcoin has been billed as a store of value, or “digital gold,” aka safe-haven.
Gold, an established safe-haven asset, was up 0.6% on the week.
Bitcoin looks to have enter a new chapter in its market action, with lower volatility and fewer price swings.
This month, Bitcoin has seen only 1 day with a 5% move or more, according to data. It had more than 8 of those price swings in January and February of this year
Other cryptocurrencies also held up this week.
Ether, the 2nd largest in the asset class, is up 0.2%, while XRP is up 0.4%.
This action tells us that crypto investors are mostly separated from what is happening in the equity markets. And Bitcoin seems to have marked a bottom at $6,000, as retail interest may have been wrung out.
The market is likely waiting on institutional buyers coming in when the regulations are defined.
Have a terrific weekend.