A report published by Kraken, one of the largest cryptocurrency exchanges in the US, has seen signs that the correlation between Bitcoin (BTC), the dollar and the Altmarkets is further weakening.
Krakens September Volatility Report noted this Bitcoin (BTC) has had a largely negative correlation with the US dollar index (DXY) since May, although the two markets briefly merged in early September..
The report attributes the divergence of the BTC dollar to the Fed’s plan to keep interest rates at zero percent until at least 2023, in addition to declining growth rates.. Bitcoin has now shown a positive correlation with the euro since May.
The report shows that, Although there was an 8-month low in the correlation between BTC and the SP 500 earlier in the month, the correlation would increase later as both markets saw sideways consolidation.
Bitcoin’s correlation with gold has remained positive since mid-JulyBoth markets have been under downward pressure in recent weeks.
Look into the future Kraken predicts that Bitcoin will perform better in October than it did in September, and that would be in line with the trend seen over eight of the past nine years.
The report predicts that October will mark an 11% gain for BTC, suggesting that Bitcoin will close the month at $ 11,850a gain of 3% compared to the current price level. However, Kraken states that Bitcoin has fallen below its monthly average in six of the nine months that have passed so far in 2020.
Kraken’s mild optimism is offset by bullish calls from two respected analysts. Former hedge fund manager Raoul Pal recently announced that he has transferred more than half of his personal investment portfolio to Bitcoin in anticipation of massive institutional adoption:
“From what I know about all the institutions, all the people I speak to, there is a huge wall of money coming into play.”
Y. Alex Saunders from Nugget’s News, compared the current system in mid-2017, predicting that institutional appetite for Bitcoin would likely trigger an “impressive surge”::
July 2017. $ BTC At $ 2,700, investors were scared of the Segwit, hard forks, and FUD. I shared an article on a formidable climb that I saw by surprise.
– Alex Saunders @ (@AlexSaundersAU) October 12, 2020
In an update to his subscribers last night, he said:
“Companies listed on the stock exchange [y] Legendary investors are singing from the rooftops about this new asset class at a time when there is record money in bank accounts looking for a home. “