Bitcoin recovered from a drop to $8,900 earlier this week. However, it has not been able to go past $9,600. It needs to if it is going to move past the resistance to the next price support. The Coin Market Cap has been decoupling from stocks. This was demonstrated on June 15 when Bitcoin dropped and there were big losses on the different futures stock markets.
Some analysts and investors wonder if Bitcoin's correlation with the stock market could interrupt the case narrative that it is a store of value or like digital gold. Matt D’Souza, who is the CEO of Blockware, recently tweeted that there are some interesting short-term trends between Bitcoin and gold values.
D'Souza says that Bitcoin's short-term correlations to big markets suggest that retail investors are using it as a hedge against instability in other places. He went on to say that each correlation suggests a new relationship, such as disruptive technology and digital gold. Some people think these correlations are good, and others do not. A few think that the ongoing COVID-19 pandemic will put more pressure on futures and national economies, and this will in turn affect Bitcoin.
The price of Bitcoin has been known to go through long squeezes. Those situations can lead to big liquidations, such as the one that happened on "Black Thursday." If there is a global economic recovery from COVID-19 effects, the equities markets could settle. Most cryptocurrency investors are still getting a profit from their investments. About 78.9 percent of Bitcoin investors have had a profit.
A few people wonder if those investors will dump Bitcoin in order to offset assets that lost value in other markets. Human psychology theories have a lot of answers for that question. The current break-even point on Bitcoin is $5,776. Most investors have a profit of around 61 percent. Each of these metrics show where Bitcoin has been and where it might go. These analyses also show that Bitcoin is maturing as an asset. Investors should keep in mind that a worsening of the COVID-19 situation could have a big impact.