Recently, the price of Bitcoin showed a record high connection with traditional markets, and on July 9, the connection between the S & P 500 and BTC all the time reached a new high.
Skew data show that the annual correlation reached 0.38 on Thursday, July 9, and this happened after the indicator reached new highs at the beginning of the week.
Recently, ties with traditional markets have grown at a steady pace, with the highest levels throughout the year. Skewed data also shows that the monthly figure also hit a record high of 0.78 on Wednesday, but has since fallen to 61.5.
Although Bitcoin is showing growing attachment to the stock market, this cannot be said for gold that exceeded $ 1800 to reach a new high, which has not been since 2011.
A recent Kraken research department report showed that precious metal bonds have declined. The 30-day rolling correlation of bitcoins also reached a four-month low of -0.49, well below the annual average of 0.24.
Are relationships a sign of bitcoin maturity?
The connection between bitcoins and the traditional stock market increased after the outbreak of coronavirus and fell on March 12 to $ 3,750. A recent Cointelegraph research report suggested that this trend could end in half, but the opposite has happened. This may be due to the sustained financial impact of COVID-19.
While the strong relationship between Bitcoin and the stock markets is said to be a sign of maturity for the asset class, the nature of the unregulated Bitcoin derivatives makes them vulnerable to long and short pressures.
Some analysts suggest that Bitcoin’s affiliation with traditional markets may indicate that BTC is becoming increasingly represented in a wider portfolio of portfolios with a traditional structure, and this will be a sign of further adoption.
Will Bitcoin Price Be Fixed?
After a long year and a half, the noise of the bitcoins seems to have stabilized. Digital assets reached record low volatility: 10-day volatility reached 0.2, which has not been observed since November 2018.
Bitcoin's fall volatility is also seen amid low volumes, and recent data show that the volume of BTC-USDT and BTC-USD trading pairs fell 56% and 44% in June.
As the price continues to find resistance at $ 9300, a sharp bearish correctional change continues to rise. For this reason, traders expect $ 9,500 since the price of bitcoin should be broken in the short term. Failure to do so increases the risk of a price drop to the level of 8,000 US dollars or less.
This trend is observed in crypto derivatives and spot products. In June, the volume of derivatives decreased by 35.7%, which is the lowest level in 2020, and the immediate volume decreased by 49.3%.
The decline in volume, low volatility, strong correlation of stocks and paradoxical correlation of gold lead to a decline in bitcoin prices, especially in connection with the good performance of other securities holders.