Keizer insists ‘Bitcoin is inversely correlated to USD, not equity markets’ after cryptocurrency market crash
Reports that global banking giants helped criminals launder money for nearly two decades helped cause global stock markets to collapse on Monday, September 21. However, these concerns are dismissed by Max Keizer, a bitcoin pioneer and Wall Street analyst who insists that bitcoin behaves differently.
Keizer’s latest comments on bitcoin were prompted by comments made by a Twitter user who questions the common view that cryptocurrencies are immune to the global financial system. In a tweet, the user expresses concern that every time “when the stock markets go down, Bitcoin gets hit.” The user insists that “if Bitcoin is ever to succeed, it must break the thumb of the banking system. Until then it won’t be possible. “
In his response, Keizer argues that “bitcoin, like gold, is inversely correlated with $ USD – * not * on the stock market.” In a warning to bitcoiners, Keizer says “don’t be fooled by randomness.”
Like Keizer, many bitcoin supporters insist that the major cryptocurrency follows a different path from company stocks. They point to the movement of crypto shortly after crashing 40% on March 12, the so-called Black Thursday. At the time of the crash, global markets were also in the red, but it is Bitcoin that appears to have recovered and grown at a much faster rate than stocks.
To illustrate, an observation of the data available on Markets.bitcoin.com shows that the value of bitcoin nearly doubled between March and September 2020. Specifically, on March 21, bitcoin, which dominates the cryptocurrency market, was trading at $ 5,792. However, at the end of September 21, the leading digital asset was trading at $ 10,499.
By comparison, the Dow Jones Industrial Average, the widely watched US benchmark for top-tier stocks, closed March 20 at 19,173 points. However, exactly six months later, the index closed the day of September 21 at 27,147 points, which represents a growth of 41.5% since March.
Apparently, it is this data that convinces some bitcoiners that the cryptocurrency has an inverse relationship with fiat currencies like the USD.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.