As top digital asset Bitcoin has witnessed new highs, the traditional assets have registered bearish trends over the recent week. It shows Bitcoin has completed decoupled from Wall Street assets, even from the S&P 500.
Bearish Sentiments in Traditional Markets
In last week, Bitcoin touched the highest position of the year, but the prominent assets in the traditional markets were going down. Prominent indices, including S&P 500, Dow Jones Industrial Average (DJI), and NASDAQ Composite, have dumped, while Bitcoin is approaching towards $14,000. In today’s trading sessions, the Composite index of Nasdaq has lost 2.5% of its value, while the S&P 500 has plunged by 1.5%.
In the traditional markets, the S&P 500 was the only that behaved similarly to Bitcoin in uncertain times. But the current data suggests that both are performing in opposite directions as compared to the past trend.
Bitcoin’s Position as Safe-Haven
Even there are bearish sentiments in the traditional market, the world’s leading cryptocurrency is going up, which shows it has achieved the status of safe-haven in a true sense. Besides uncertain times due to struggling economies across the world amid Coronavirus, Bitcoin is gaining momentum. In the past, gold was considered a perfect status for the safe-haven asset because gold played very well in uncertain times across the globe. Bitcoin, also known as virtual gold, may take the status of safe-haven if the price value of Bitcoin continues to increase.
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There is a fear of the second wave of the Coronavirus pandemic, and the various governments are considering imposing lockdowns in an attempt to curb the pandemic from spreading. In the past three months during the pandemic time, Bitcoin showed reverse behavior as compared to Wall Street assets.
Due to the rise in the price value, BTC dominance has also jumped significantly as it stands at 63%. Bitcoin’s dominance has also resulted in underperform on the part of some altcoins. For instance, Ethereum (ETH) and Ripple (XRP) have shredded 5.91% and 5.33%, respectively.
In recent days, various unimaginable things happened in the cryptocurrency space. First, payment giant PayPal announced the support of cryptocurrency. Second, Iran has given Bitcoin the legal status for exchange amid the US sanctions.