Most cryptocurrencies were barely affected by a recent stock market slump that saw most blue-chip stocks erase this year’s gains before quickly recovering. In fact, cryptocurrencies like bitcoin saw their price drop slightly after Dow Jones and the S&P 500 crashed.
According to Mati Greenspan, a senior market analyst at social trading platform eToro, these past few days showed that cryptocurrencies are uncorrelated to the equities market, and presumably can be used to hedge. He was quoted as saying:
The fact that the current stock market rout has not had any effect whatsoever (positive or negative) on the cryptoassets is an extremely positive sign. This is a prime example of how crypto’s are uncorrelated and it only serves to increase their use case as a powerful tool for asset management.
Bitcoin, according to CryptoCompare data, gained 0.24% in the last 24-hour period, as it’s trading at $6,470. This, as MarketWatch points out, is the tenth consecutive session in which the flagship cryptocurrency sees its price barely change.
Its volatility, as available data shows, has been low since October 16, as the crypto hasn’t traded above $6,500 or below $6,300 since them. It saw significant action on October 15, when its price jumped to $7,200, near its 200-day moving average, before falling to a $6,700 high and subsequently correcting.
As covered, a cryptocurrency fund manager, Anthony Pompliano, has recently argued that it “wouldn’t be rational” to expect positive announcements to affect bitcoin’s price in the short term, as “the work that is being done today will be reflected in crypto prices 2-3 years from now.”
His comments came shortly after Bakkt, the cryptocurrency platform that’s set to be launched by the Intercontinental Exchange (ICE) revealed it’s launching its bitcoin futures contracts on December 12, and after Coinbase added Circle’s USDC stablecoin.
Notably, positive developments have been mounting, along with bullish price predictions. Recently, Albania revealed it is “assessing and working” on drafting cryptocurrency regulations, and Square, the company behind the Cash app, made its BTC cold storage technology fully open-source.
Jim Blasko, the founder of Bitcoin Talk Radio, has recently predicted bitcoin could reach its peak at around $100,000 to $200,000 toward the end of 2020, potentially over the halving of mining rewards and fear of missing out (FOMO).
Most top altcoins are currently in the green as well, up anywhere between 0.1% and 1.2%. Zcash, monero and QTUM are currently down by small percentages, in what’s presumably a correction from yesterday’s gains.