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The 30-day co-efficient of Bitcoin and the MSCI index for global equities is falling towards minus 0.20. This is a rare occurrence as the measure has stayed typically positive since 2020.
Donald Trump’s electoral push and growing embrace of Bitcoin and the broader crypto market are showing a growing divergence from global equities.
As per the Bloomberg report, the 30-day co-efficient of Bitcoin and the MSCI index for global equities is falling towards minus 0.20. This is a rare occurrence as the measure has stayed typically positive since 2020. A reading of 1 shows that Bitcoin and global equities are moving in lockstep while a reading of -1 suggests that they are moving in the opposite direction.
Photo: Bloomberg
Global stocks are facing some pressure following a mixed start to the second-quarter earnings season. Investors are seeking evidence that this year’s rally, fueled by artificial intelligence and technology firms, can continue.
During his recent Presidential campaign, Donald Trump has gone all-in supporting Bitcoin and the rest of the crypto market. Besides, he has also vowed to support the Bitcoin mining industry if he returns to power. Further reaching out to the crypto industry, President Donald Trump will be making an appearance at the upcoming Bitcoin Conference 2024 scheduled later this week.
Betting markets favor the Republican nominee for November’s election, boosting Bitcoin in hopes of a more supportive US regulatory environment. Sean McNulty, director of trading at Arbelos Markets said:
“Bitcoin is now a proxy for a Trump victory. For stocks, there are no such clear winners and losers from a Trump trade.”
On the other hand, vice President Kamala Harris is now trying to close the gap with the crypto industry. Reportedly, Harris is also set to make an appearance at the Bitcoin conference, however, her office has yet to confirm the same.
Bitcoin Price Action Going Ahead
Amid the strong BTC distribution to Mt. Gox creditors, the Bitcoin price has come under some selling pressure dropping all the way under $66,500 as of press time. CryptoQuant CEO Ki Young Ju reported that there has been no notable increase in hourly spot trading volume or Bitcoin outflows on Kraken since then. While we need to monitor the Asian trading session, the current signs are positive.
Correction occurred due to Mt.Gox issue, reaching the defense line of 1-3 month holders
“As a result, the price temporarily fell and is currently hovering around $66.7k. This price range is very close to the average purchase price of $66.5k for 1-3 month $BTC holders.
If that… pic.twitter.com/MVfvxzerSn
— CryptoQuant.com (@cryptoquant_com) July 23, 2024
Furthermore, CryptoQuant stated that $66,500 remains a crucial support zone which has been the average purchase point for BTC holders over the last three months. If the BTC price fails to recover this, it can slip further to $63,600.
