Bitcoin Price, Stocks, Set to Correct If Fed Fails to Extend Stimulus

A recent newsletter to Delphi Digital clients delved into the economic aftermath of the coronavirus pandemic and how the current fiscal stimulus package from the U.S. Federal Reserve could be propping up equities markets and the entire economy.   According to the firm, COVID-19-related government spending has breached the $1.1 trillion mark, bringing June’s monthly budget deficit to $864 billion, the worst in U.S. history. This has pushed the country’s deficit to $2.7 trillion for the first half of 2020.  As the Federal Reserve continues to print money to bolster the…

Stocks TD9 Sell Sign Flashes Yet Bitcoin Traders Expect Higher Price

The TD9 sell indicator emerged on the S&P 500 chart across various time frames. Considering the heightened level of correlation between Bitcoin and stocks, it might hint at a short-term BTC price pullback. But cryptocurrency traders seemingly remain unfazed by the vulnerability of stocks. Several traders anticipate Bitcoin to rally towards the mid-$9,000s despite the TD9 signaling for a correction. What is the TD9 system, and why could it hint at a BTC pullback? A TD9 sell signal is an indicator part of the widely-cited TD Sequential system. It spots…

Former Chinese Official Says CBDC Will Pave Way for Digital Stocks

Xiao Gang, the former chair of the China Securities Regulatory Commission, says in his latest book on China capital market reforms that the development of a central bank digital currency (CBDC) will pave the way for digital stocks. Stocks and currencies are separate entities in traditional finance, however blockchain-based digital currencies blur the boundaries between the two and raise new possibilities. Xiao adds that “digital stock is the natural product of digital currency in the future.”  Before that can happen a number of challenges that need to be explored in…

Correlation Between Bitcoin Price and Stocks Reaches a New All-Time High

Lately, Bitcoin price has been showing record-high levels of correlation with traditional markets and on July 9 the correlation between the S&P 500 and BTC reached a new all-time high.  Data from Skew shows that the one-year realized correlation reached 0.38 on Thursday, July 9 and this came after the metric had reached new highs earlier in the week. Bitcoin – S&P 500 Realized Correlation. Source: Skew The correlation with traditional markets has been growing at a steady pace recently, with the one-year reaching consecutive new all-time highs. Data from…

Bad Day for Stocks Sends Bitcoin Price Below Key $9.3K Support

Today Bitcoin (BTC) price abruptly dropped 2.93% to $9,160 before traders stepped in to push the price back to the $9,200 level. Crypto market weekly price chart. Source: Coin360 The mild correction occurred as the Dow pulled back 370 points and the S&P 500 and Nasdaq also saw small losses. Gold also pulled back 0.92% but still is only $17 away from its recent high at $1,818. BitMEX XBT-USD Liquidations. Source: Skew The drop below $9,200 resulted in $15 million in BitMEX liquidations and at the time of writing the…

China Stocks Boom Bullish for Bitcoin? 5 Things to Watch This Week

Bitcoin (BTC) begins a new week testing increasingly weak $9,000 support, but what factors could make or break price performance? Cointelegraph Markets takes a look at the main things traders should focus on in Bitcoin for the coming five days.  Stocks recover led by China  Stock market futures showed a mixed but overall stronger mood going into Monday. Data, notably last week’s better-than-expected United States employment figures, helped to buoy the mood. Stocks continue to rise, with Chinese stocks booming, despite the rapidly increasing spread of coronavirus. China’s FTSE A50…

The Number of Stocks Reaching All-Time Highs is Growing; Why Bitcoin Won’t Follow

Bitcoin and the stock market have formed a close correlation in recent weeks, but this is now showing some signs of breaking as BTC trades sideways while most equities begin picking up some momentum. The stock market has been seeing an intense recovery, and its momentum appears to be picking up once again as many states and cities that were previously on lockdown begin opening up. One indicator of the market’s newfound momentum can be seen while looking towards the number of publicly traded companies that are seeing their stock…

All Inflation? In Bitcoin Terms, Stocks Never Recovered From Covid-19

Bitcoin (BTC), in fact, crushed stock markets during the Covid-19 recovery with equity “growth” simply down to inflation, fresh data argues. Charts showing stocks denominated in gold and Bitcoin in 2020 show that far from having their best quarter in ten years, markets had no “recovery” at all. “It’s all inflation” The perspective is starkly different to the message coming from governments and mainstream media about the health of the economy. Central bank intervention, they claim, helped boost stocks to clinch their strongest quarterly growth since 2011 in Q2. But…

Bitcoin Risks 20% Drop as Outlook for ‘Stimulus Junkie’ Stocks Sours

The Dow Jones plummeted by 2.84% on June 26, recording a 9.27% fall since the month’s peak. As risk-on assets face the fear of a correction, the vulnerability of a near-term Bitcoin (BTC) price pullback may increase. While many fundamental factors are causing a stock market downtrend, analysts are pointing at the decline in liquidity as the primary catalyst. As the Federal Reserve’s balance sheet started to contract, U.S. stocks fell in tandem. The correlation between Bitcoin and U.S. equities in recent months raises the probability of a BTC price…

A Chilling Bitcoin “Death Cross” Reappears With a Gloomy Stocks Correction

Bitcoin has formed a “Death Cross” pattern on its daily chart as price slips ahead of the New York opening bell. The cryptocurrency’s 50-day simple moving average today closed above its 20-day exponential moving average. The pattern surfaced as the U.S. futures signaled a negative session ahead. Bitcoin and the S&P 500 have shown a positive correlation. Bitcoin’s daily moving averages (MA) have formed a “Death Cross” – a market signal interpreted by some traders as hinting that the cryptocurrency will fall further. The 20-50 Factor The ominous indicator confirms…