Thumb UP👍 if you find this chart interesting! 👨🏻💻This chart shows a strong reversal correlation of prices between one of the famous classic financial instruments NYSE:MSCI and BTC. So you have one more indicator in your trading strategy! What do you guys think about it? Let's discuss in a comment! ________________________________________________________________________________________________________________________________________________________________________________________________ 🚀Let me remind you that Bitcoin was created as a response to the crisis in the real estate market that broke out in 2008 and had serious consequences for the entire economy. Over time, the cryptocurrency managed to win the interest of traditional investors, who began to consider BTC as one of the hedging tools against geopolitical risks. This is particularly evident during the escalation of the trade war between the US and China. Then the bitcoin exchange rate significantly strengthened, as many believed that it could offer them protection from shocks in the financial markets. It is noteworthy that this happened against the background of falling stock indexes.
It is no secret that the main players in the cryptocurrency market are Asians, especially Chinese. Historically, it can be traced that when panic sales of classic cyclical assets begin in China due to increased geopolitical or other risks, there is an increase in bitcoin. Thus, the Chinese population is trying to protect their assets. Therefore, it can be argued that the further growth of tensions in trade relations between the United States and the rest of the world, the Outbreak of the virus epidemic, is likely to fuel interest in "digital gold". And in General, classical markets need a correction, at least technical, the American stock market has been growing continuously for more than 10 years, the reason for this can be any, why not a Coronavirus?
✅Investors need a reason to fix previously earned profits and then the fall can develop like a snowball. This situation can be a moment of truth for bitcoin. If the cryptocurrency manages to establish itself in the status of a protective asset, this can give a strong impetus to the further growth of the BTC.
So does this social correlation tell us that looking at classic market indicators and instruments is a mere relative excercise?