Bitcoin’s newly found independence

BTC futures are currently trading fractionally higher and as of 5 PM, Est is exhibiting a $70 (0.54%) gain on the day. Although the gains themselves are marginal the fact that BTC has not declined dramatically alongside the substantial losses in U.S. equities (S&P and Nasdaq both down over 1.5%) today is a very bullish sign for the digital currency.

Bitcoin futures have followed moves in the S&P 500 pretty closely for years especially when it comes to sell-offs such as December 2018 and March of this year. However, this month has shown us a de-coupling of this correlation as equities have fallen as BTC has spiked for October. This can be perceived as bullish for Bitcoin for two reasons.

First of all, Bitcoin running up had been seen as shadowing equities and not an independent market with its own drivers. If Bitcoin can continue to rise as equities fall it will show that its traders see it as a separate entity with investors less willing to sell. Secondly, this is positive for BTC as U.S. equities are likely to continue falling. This is due to election uncertainty and record levels of new cases of COVID being reported across the country.

Lastly this can be viewed as Bitcoins continued growth towards a safe-haven asset.