Rollopda @Rollopda: "𝗪𝗛𝗬 𝗜𝗦 $BTC 𝗖𝗢𝗥𝗥𝗘𝗟𝗔𝗧𝗘𝗗..."

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Edited

𝗪𝗛𝗬 𝗜𝗦 $BTC 𝗖𝗢𝗥𝗥𝗘𝗟𝗔𝗧𝗘𝗗 𝗧𝗢 $SPX500 ? Online, you can find many articles that try to analyse or find a correlation between the SPX500 (or more in general the US indexes) and BTC, but to me it seems many of them are missing one crucial point. To analyse any market, we have to keep in mind that it is regulated only according to how the money flows in and out of it, and technical analysis, patterns, indicators, and ratios are helpful. Still, they are just an interpretation of a few parameters we use as input. A few years ago, BTC was not as easy to use as it is today; and to use it, it required a deep knowledge of the processes that regulate it, which is why it gained so much in such a short period. 𝗬𝗢𝗨 𝗞𝗡𝗢𝗪 𝗛𝗢𝗪 𝗜𝗧 𝗪𝗢𝗥𝗞𝗦 ➡️ 𝗬𝗢𝗨 𝗨𝗡𝗗𝗘𝗥𝗦𝗧𝗔𝗡𝗗 𝗜𝗧𝗦 𝗩𝗔𝗟𝗨𝗘 ➡️ 𝗬𝗢𝗨 𝗛𝗢𝗗𝗟 𝗜𝗧 To keep it simple, let’s divide Bitcoin life into three macro eras: • 𝟮𝟬𝟬𝟵 - 𝟮𝟬𝟭𝟲 👉 Most of the BTC holders were guys with knowledge of the blockchain technology. • 𝟮𝟬𝟭𝟲 - 𝟮𝟬𝟭𝟵 👉 BTC came out among people passionate about technology, and many enthusiasts started buying it. • 𝟮𝟬𝟭𝟵 - 𝟮𝟬𝟮𝟮 👉 Many reliable platforms (cheers eToro) and a few Hedge Fund started cryptocurrencies trading, so traders and investors can access them very easily. 𝗡𝗘𝗥𝗗 ➡️ 𝗧𝗘𝗖𝗛 𝗚𝗨𝗬𝗦 ➡️ 𝗜𝗡𝗩𝗘𝗦𝗧𝗢𝗥𝗦 To fully understand the correlation between these two assets, which were totally uncorrelated until a few months ago, we cannot ignore the retail investor and the various founds from the analysis. With a focus on the US market (but it can be adjusted to the rest of the world easily), the rise in the interest rate by the FED to reduce inflation forces companies and investors to manage their money differently. Companies pay more for their debts, resulting in less profit. At the same time, investors must be cautious with their funds because, on one side, their portfolio is sinking, so rebalances are required; on the other side, the increased cost of living makes them think twice before taking risks. 𝗙𝗘𝗗 𝗿𝗶𝘀𝗲𝘀 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝘀 ➡️ 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗱𝗲𝗯𝘁𝘀 𝗮𝗿𝗲 𝗺𝗼𝗿𝗲 𝗲𝘅𝗽𝗲𝗻𝘀𝗶𝘃𝗲 ➡️ 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗲𝗾𝘂𝗶𝘁𝘆 𝗱𝗿𝗼𝗽𝘀 ➡️ 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝘀𝗲𝗹𝗹 𝘁𝗵𝗲𝗶𝗿 𝘀𝘁𝗼𝗰𝗸𝘀 ➡️ 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀’ 𝘀𝘁𝗼𝗰𝗸 𝘀𝗵𝗮𝗿𝗲𝘀 𝗴𝗼 𝗯𝗮𝗰𝗸 𝘁𝗼 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 ➡️ 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗺𝗮𝗿𝗸𝗲𝘁 𝗰𝗮𝗽 𝗳𝗮𝗹𝗹 ➡️ 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝘀𝗲𝗹𝗹 𝘁𝗵𝗲𝗶𝗿 𝘀𝘁𝗼𝗰𝗸𝘀 ➡️ … In conclusion, I firmly believe that Bitcoin and the SPX500 are correlated mainly because of the new category of users that joined the crypto universe. Traders and Investors act with cryptocurrencies as with any other stock, so if there is a downturn in the market and Bitcoin is part of their portfolio, it will be managed accordingly. Moreover, today, all the financial educational contents available on the web, make people conscious about their investments and they move through them differently. 𝘾𝙤𝙣𝙛𝙪𝙨𝙞𝙣𝙜 𝘽𝙏𝘾 𝙩𝙧𝙖𝙙𝙞𝙣𝙜 𝙬𝙞𝙩𝙝 𝘽𝙞𝙩𝙘𝙤𝙞𝙣’𝙨 𝙩𝙚𝙘𝙝𝙣𝙤𝙡𝙤𝙜𝙮 𝙘𝙤𝙪𝙡𝙙 𝙡𝙚𝙖𝙙 𝙩𝙤 𝙚𝙧𝙧𝙤𝙧𝙨 𝙩𝙝𝙖𝙩 𝙢𝙖𝙣𝙮 𝙤𝙛 𝙪𝙨 𝙘𝙤𝙪𝙡𝙙 𝙧𝙚𝙜𝙧𝙚𝙩 𝙞𝙣 𝙩𝙝𝙚 𝙛𝙪𝙩𝙪𝙧𝙚. $NSDQ100 $DJ30 $ETH

5 Mentioned

BTC

Bitcoin

SPX500

NSDQ100

DJ30

ETH

Ethereum

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