Bitcoin witnessed a noticeable rise during trading last week, rising from the level of $ 8,750 on May 25, and reaching a weekly high near $ 9,800, amid numerous attempts to breach the psychological support level of $ 10,000, and the cryptocurrency settles above the price of $ 9,500. Increased demand for the largest cryptocurrency in the world with the improvement of risk appetite among investors.
Bitcoin continues to consolidate within a tight trading range between $8,500 and $9,800, and the bullish momentum of the leading coin is expected to continue to break through the $10,000 level, as many factors indicate that Bitcoin is on the cusp of a full bull market but the market must undergo a downside first.
Every time the cryptocurrency rises Q8 TradeTo the $10,000 level it is quickly rejected to pull back to the $8,500 support level, and from that level it bounces back.
Compare Bitcoin with the performance of other markets
Many traders and speculators expect Bitcoin to rise along with the precious metals sector as there seems to be a strong belief that the leading cryptocurrency aligns well with the precious metals. Researchers tried to put this assumption into a simple test and the results were against those expectations, and this is what happened:
Bitcoin appears to be similarly volatile compared to precious metals, although the general trend of Bitcoin has been moderately lower since February 2020 peaks, while gold and silver saw an advance in price activity over the same time period, precious metals rallied much faster after bottoming I recorded it in March 2020, while Bitcoin did not start to rise until the end of April 2020, and due to this disconnect in the price correlation we do not believe that Bitcoin is in line with the precious metals sector.
Bitcoin doesn't seem to align with the price action of the S&P 500 either. After the February 2020 peak, the price alignment between BTC and S&P was nearly in sync, but a broader price decoupling was most evident in late April as Bitcoin rallied and remained an index. The S&P 500 is fairly flat, and due to the shift in price alignment we believe Bitcoin also doesn't align with the S&P 500 well enough to derive any correlation across the market.
Goldman Sachs Waging War on Bitcoin
During the Corona virus crisis, cryptocurrencies did not maintain their value and bitcoin lost thousands of dollars in March as financial markets lost many billions, and this reflects the gloomy mood of global markets, and bitcoin has managed to rebound since then, and investors hope that banks will start dealing With cryptocurrency as a real asset class.
aGoldman Sachs launched a war on Bitcoin during the recent period, as it was claimed that it does not belong to an asset class, can be a conduit for illegal activities and is generally not a suitable investment for the bank's clients.
The bank added that while hedge funds may find trading cryptocurrencies attractive due to their high volatility, this attractiveness does not constitute a viable investment rationale.