Strong NYSE Composite, Dow Jones May Give Bitcoin a Boost Into 2020 - OhNo WTF Crypto

Breaking News

Strong NYSE Composite, Dow Jones May Give Bitcoin a Boost Into 2020

#crypto #bitcoin

As Bitcoin (BTC) has floundered over the past few months, falling by 50% from $14,000 to $7,300, American equities have been performing rather well. Earlier this week, the S&P 500 set an all-time high at 3,150, and the index has gained some 25% in the past year alone — likely one of the strongest years on record for the stock market. These gains have been reflected across the American stock market, meaning for the Dow Jones and the NYSE Composite indices as well, but not for Bitcoin and cryptocurrencies.

Related Reading: Gold Plunges After Dow Records New High; Why Bitcoin May Rise

But it may be about to get better. SentimenTrader, a popular stock market analysis firm mentioned by Bloomberg and the Financial Times, recently noted that the monthly Moving Average Convergence Divergence (MACD) indicators for the Dow Jones and the NYSE have turned positive for the first time in over a year. This, they claim, is “bullish “for stocks on a longer term basis,” as historical precedent shows that positive MACD flips led to rises “100% of the time 6-12 months later.”

Some say that this impending strengths for American equities could provide a boon to the price of Bitcoin.

Related Reading: Crypto Tidbits: Bakkt’s Bitcoin Futures Surge, UpBit Hacked for $50 Million in Ethereum, US Arrests Blockchain Researcher

Bitcoin Could Outperform With Surging Dow, S&P 500

Importantly, it isn’t only rhetoric that Bitcoin performs well when American equities do, as there is evidence that this correlation exists. Per previous reports from NewsBTC, Thomas Lee of Fundstrat Global Advisors recently observed that Bitcoin performs well whenever the S&P 500 is trending higher. To illustrate this, he posted the below chart, which shows that there is somewhat of a correlation forming on a long-term basis.

bitcoin, bitcoin price, s&p 500

Lee touched on this statistic and the whole narrative in a recent interview with CNBC’s Market Lunch segment, during which he quipped that he expects there to be a recovery in the cryptocurrency market heading into 2020.

He specifically said that the surge in the price of American equities, which are now at all-time highs mostly across the board, sets the stage for risk-tolerant investors to add capital to Bitcoin and other markets that may be deemed “risky” from a classical standpoint.

Related Reading: Despite 15% Bounce, Bitcoin Price Still Bearish on Weekly: Analyst
Featured Image from Shutterstock

The post Strong NYSE Composite, Dow Jones May Give Bitcoin a Boost Into 2020 appeared first on NewsBTC.



OhNoCrypto

via https://www.ohnocrypto.com

Nick Chong, Khareem Sudlow