Bitcoin is transitioning from being bearish to bullish, as emerging and risk markets rally to produce a tailwind for Bitcoin. Fundstrat’s Thomas Lee has been very vocal about his bullish opinions on Bitcoin. On April 12, Lee tweeted and compared Bitcoin’s correlation with emerging markets and the S&P 500. Lee tweeted,
It’s curious that Bitcoin correlation is now negative to equities (next tweet)
— Thomas Lee (@fundstrat) April 12, 2019
Lee said that the correlation between Bitcoin and S&P reached the lowest, i.e., -3,2%, while that with Gold hit the highest i.e., 12.6%. The chart attached above shows the correlation of various markets like the S&P 500, Gold, Oil market etc.
The report by Fundstrat elaborated on Bitcoin’s correlation, stating,
“Within major asset classes, Bitcoin is most correlated to Gold with a 90D correlation of 12.6%.In the past week, the largest change in correlation was S&P 500 (-15.7%).”
According to Lee, the disparity between S&P 500 and Bitcoin is with respect to luring investors to invest in Bitcoin, which offers much higher returns when compared to traditional markets. With reference to the Fundstrat report, Lee said that since S&P 500 has been less volatile and since its BTC correlation was turning negative, Bitcoin’s position in the mainstream market seemed to be solidifying. It further explained why institutional investors were showing interest in Bitcoin, he said.
Lee’s conclusion read,
“From page 9 of @fundstrat_ken report, BTC correlation to S&P 500 has turned negative. Couple that with low volatility everywhere and It partially explains why institutions have been buying crypto recently”
In one of his previous tweets, Lee had compared various factors which were acting as tailwinds for Bitcoin, further adding weight to Lee’s opinion about investors jumping ship from markets like the S&P 500 to Bitcoin.
Lee had stated,
“earlier this year, we noted the “macro” factors such as rally in risk assets plus USD no longer surging are tailwinds 4 $BTC #bitcoin”
Moreover, Lee also tweeted about Bitcoin’s Misery Index, according to which, Bitcoin had bottomed as it reached 89, its highest level to-date. He also claimed that the recent pump was the start of a bull rally.
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Bitcoin [BTC]: 60 Minutes segment airs on CBS; market relieved over no FUD content
Bitcoin [BTC], the largest cryptocurrency in the world has gained a lot of mainstream media attention over the years. However, most media houses have often failed to deliver the message to the masses, with the main reason being lack of research and knowledge of the subject. The cryptocurrency was thrown back into the spotlight after CBS released a teaser to their latest “60 Minutes” episode, unveiling a few influencers of the industry, speaking about their experience.
The episode, which released on 19 May 2019, immediately grabbed the attention of the cryptocurrency space, with a majority wondering whether the media channel would nail it or fail it. Interestingly, there was a poll conducted on Bitcoin Talk, where the question was ‘CBS 60 Minutes 5/19/19 on Bitcoin. Will it cause FOMO or FUD?’
60 Minutes, broadcast on the CBS Network is one of the oldest and most-watched American television programs, with the focus being “the real story on America’s most prevalent issues”. According to CBS, 60 Minutes has an average of 11.4 million viewers and about a million people who listen to its radio broadcast and podcast.
The show titled ‘Bitcoin’s Wild Ride’ aired hours ago, and covered the story of Charlie Shrem, the founder of BitInstant, Laszlo Hanyecz, the famous pizza guy who is recognized as the first person to make a real-world transaction with Bitcoin, and Marco Streng, the CEO of Genesis Mining. The segment also had Neha Narula, the Director of Digital Currency Initiative at MIT Media Lab, answering questions pertaining to the coin, and Lael Brainard, a member of the US Federal Reserve, speaking about why not Bitcoin.
The show was briefly explained by a Redditor, EternitySphere,
Unlike other mainstream Bitcoin segments, this segment was well-received by the Bitcoin community after a majority agreed that it did not spread FUD and that it was an unbiased episode, contrary to expectations. However, there were few concerns pertaining to a lack of content, with some believing that it failed to explain key information; which includes how it derives it value, albeit there was no FUD.
Franky1 commented on Bitcoin Talk,
“[…] next was the whole describing mining segment involving genesis mining.(facepalm) ASIC’s do not store records(asics have no hard drive).. so saying the mining done by genesis is the location where records are kept can be misguiding people to think genesis mining are ‘the bank’ and user software just ‘watches the numbers and letters'[…]”
Rdbase also remarked on the Bitcoin forum,
“The whole segment was about charlie shrem known as bitcoin moses and his fall into bad luck with taking a payment which was used to buy illegal things on the dark web. It did have some good points but overall it was just directed towards the public view about it. As a skeptical thing to use and banks were safer with its fiat financial system”
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