For the second day straight, Bitcoin is up while equities fall. Is this the beginning of a decoupling from traditional markets?
@SmartContracter picked up on this trend yesterday by saying:
“was very surprised to see this today, but there is nothing i would like more than to see btc break its correlation with equities.”
However, he tweeted again today to say the pattern has repeated. What’s more, he added that the current market dynamic, of a clear delineation between Bitcoin and the alts, is also an infrequent occurrence.
Parallels were drawn with the April Fool’s pump of 2019 when Bitcoin jumped from $3k to as high as $14k over a three month period.
With that, he predicts that a continuation past $12.5k will see the same thing happen again.
2 days in a row now #btc up and equities down, shits getting real interesting now,
i also cant remember the last time btc pumped and alts outright dumped, in fact i believe it was back when btc broke 4k in april 2019, probably a sign of whats to come if/when $btc breaks 12.5k pic.twitter.com/V2lfjnPR9T
— 👨🌾Benjamin Bluntz👨🌾 (@SmartContracter) October 20, 2020
Typically, a weak dollar equates to both Bitcoin and equities pumping. However, with the Dollar Index (DXY) falling to a 28-month low, equities have bucked the trend by also falling with the dollar.