It’s now been several months since Black Thursday and although markets are still reeling from the aftermath, risk appetite is returning. One crypto fund advisor says that this resurgence in risk appetite will soon spill over into Bitcoin and Ethereum.
When it does, the fund manager expects the leading cryptocurrency to punch right through $10,500 and go for a knockout follow up at $14,000.
Can Crypto Break Free From Stock Market Sleeper Hold?
At the start of 2020, the stock market was capping off one hell of a bull run and setting new all-time highs. Bitcoin and the rest of the crypto market had seemingly bottomed and began to break out from a bear market.
But then the pandemic hit, Black Thursday set assets back years in valuations, and the entire global economy suffered a shakeup. Markets have since recovered, and are attempting to stabilize. It’s led to a boring, stagnant price range in stocks and Bitcoin.
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The volatitly in stocks is at record highs, while Bitcoin’s is at record lows. However, the two distinctly different asset classes have been trading lock and step since the start of the year.
BTCUSD S&P500 Correlation In 2020 | Source: TradingView
As things tighten and coil in BTCUSD, the crypto market prepares for a major breakout, but any movements have relied on stocks to lead the way.
But as risk appetite increases once again, one fund manager expects this to spill into Bitcoin and Ethereum, delivering a one-two punch through resistance at