The sentiments of the stock markets have been quite fragile, fluctuating between old adages and internet trolls. Elon Musk, the founder and CEO of Tesla yesterday caused a massive $15 billion wipe-out from the market capitalization of Tesla. The traders were irked by a personal tweet from the famous entrepreneur.
Tesla stock price is too high imo
— Elon Musk (@elonmusk) May 1, 2020
In the last two days, Tesla has dropped 20%. The S&P 500 and Nasdaq Composite fell 4.79% and 3.4%, respectively. Amazon registered a 7.6% decline on 1st May. Josh Rager, a crypto analyst and trader tweeted,
Regardless if you pay attention to the stock market or not, it’s important as it has an impact on Bitcoin price -$BTC
$ hit a key area at $2954 (Everyone wanted $3000+ and we didn’t get it) and has since pulled back 4.5% Watch $2727, closing below would lead to a lower-low
Due to the recent strong correlation with the stock markets, there is considerable reason to believe that Bitcoin might follow the stock market sentiments as well. However, Mati Greenspan, financial and crypto analyst noted in his newsletter,
Well, maybe not. Over the last 48 hours or so, we’ve seen a few rather encouraging moments of decoupling.
As the whole world is quantitative easing, Bitcoin is ‘Quantitative Hardening.’
Post Bitcoin halving, the stock-to-flow model suggest that it will become even scarcer than gold. On the other hand, the stock markets have had a quick recovery due to the economic stimulus by the Fed; around $6.6 trillion in QE has been passed by the US Federal Reserve since the panic in coronavirus panic in March. Moreover, he also noted that in 30-60 days after the halving, the markets can expect a nice run-up.
Gold, on the other hand, responded positively on 1st May, as it held onto the break-out from the head and shoulder’s early in April at $1670. The targets for Gold are bullish around $1900/ounce with high optimism of breaking ATH.
Gold or Stock Markets? Which asset will Bitcoin price reciprocate with in next three quarters on 2020? Please share your views with us.
Source: Coin GApe