Mati Greenspan, the founder of Quantum Economics, a company that provides market analysis, consultancy, and asset management, bids adieu to the relationship between the performance of the largest cryptocurrencies and the best-performing equities of publicly traded firms.
“No longer a couple”: Top analyst Greenspan on Bitcoin (BTC) and stocks
The SPX500, a market value-weighted index that follows the prices of 500 big companies traded on the American market, and Bitcoin (BTC), the largest cryptocurrency asset by market capitalization, have ceased to exhibit any discernible link. Today, September 18, 2023, well-known analyst and investor Mati Greenspan posted this perspective on social media.
He used a graphic from CoinMetrics, a well-known blockchain data analysis company, to demonstrate his point. It reveals that since early 2023, the correlation between the two numbers has been declining.
This metric’s current fall is the biggest since the height of the 2018–2019 bear market. In Q1 2022, the correlation between Bitcoin and the SPX500 reached an all-time high of 0.7.
Due to BTC’s immaturity in the early years of its history, the connection was primarily negative. During the 2020 crisis, the correlation also began to increase at the same time.
In addition, as previously revealed by U.Today, Bitcoin (BTC) continues to be associated to Nikkei 225, a Japanese counterpart of SPX500.
Bear market phenomena?
Additionally, Bitcoin (BTC) lost its link with gold in June 2023. The assets are known for their ability to act as hedges against rising market volatility.
Greenspan refrained from pointing up the underlying causes of such a remarkable “decoupling.” He did, however, make a suggestion that it may be connected to the challenging negative recession stage for Bitcoin (BTC):
You may refer to it as a bear market phenomenon if you wish. According to data from CoinMetrics, the relationship between BTC and the SPX500 has ended. We wish them well as they part ways!
The market is in an accumulation phase, the final depressing one before the commencement of a fresh bullish rise, according to analyst PlanB’s opinion today. He predicts it will happen between 2024 and 2025, as U.Today reported earlier today.