A report from the major US cryptocurrency exchange, Kraken, revealed signs that the relationship between Bitcoin (BTC) and the dollar and the old markets is still waning.
Kraken’s September Volatility Report showed that Bitcoin (BTC) has largely maintained a negative correlation with the US Dollar Index (DXY) since May, despite the two markets’ brief merger in early September.
Bitcoin 30 Day Moving Link to US Dollar Index: Kraken
In the report, the deviation of the Bitcoin price from the dollar was illustrated by the US Federal Reserve’s plan to maintain zero interest rates until at least 2023, in addition to cutting interest rates. Meanwhile, Bitcoin has shown a positive correlation to the euro since May.
The report indicates that while the 8-month low was recorded in the relationship between BTC and the S&P 500 at the start of the month, the correlation will intensify later as both markets witnessed sideways consolidation.
Bitcoin’s gold correlation has remained positive since mid-July, with both markets coming under pressure in recent weeks.
Bitcoin Gold 30-Day Moving Link: Kraken
Looking to the future, Kraken expects Bitcoin to perform better in October compared to September, in line with the trend seen in eight of the past nine years.
The report predicts October will see an 11% gain in BTC, indicating that Bitcoin will close the month at $ 11,850 – a 3% increase from today’s price level. However, Kraken notes that Bitcoin has lagged behind the monthly average of six of the nine months that occurred in 2020.
Kraken’s moderate optimism is confirmed by the optimistic conversations of two respected analysts. Former hedge fund manager Raoul Pal recently revealed that he had transferred more than half of his personal investment portfolio to bitcoin in anticipation of a massive institutional credit:
“As far as I know from all institutions, and all the people that I talk to, a huge wall of money is set aside for this.”
Alex Saunders of Nugget’s News compared the current situation to mid-2017 and predicts that institutional appetite for bitcoin is likely to spark a “nice rally”:
He said in a message to subscribers last night:
“Listed companies [and] legendary investors are singing from the rooftops about this new asset class at a time when money is breaking records in bank accounts to find a home.”