The creator of Quantum Economics sees Bitcoin and the S&P 500 more closely correlated than ever because of the coronavirus pandemic.
Crypto analyst Mati Greenspan won the title of “father of the year” in the two hosts of Virtual Blockchain Week As he tended to his kid when providing a presentation to the virtual conference’s attendees. Greenspan explained that Bitcoin and heritage assets were more closely correlated than you may think in the aftermath of COVID-19.
Resplendent in a sharp bowtie, the Founder of Quantum Economics exhibited the next graph”that shows what is happening in crypto. “This graph reflects Bitcoin’s correlation with the S&P 500 on a selection of 1 (perfect correlation) to -1 (inverse correlation). For crypto fans hoping to get a favorable outlook on Bitcoin (BTC), Greenspan confessed “most of you’re not going to enjoy what I must say.”
According to the data Greenspan compiled from Coinmetrics, BTC and the S&P 500 now have a correlation of approximately 0.6. This is the highest significance We have seen since January 2011, when significance barely exceeded 0.3. Greenspan says this type of value indicates almost no significance in any way.
He Argues,”nothing has surfaced that is said ‘crypto will be our savior.”’ Bitcoin is still considered a “hazard asset” and “has not attained the safe haven status that gold has taken thousands of years to accumulate.”
Bitcoin still generally improved in 2020
Pausing To feed his kid some bites, Greenspan continued his talk on”How to Invest in a Post-Virus World” by zooming in on Bitcoin’s 2020 performance against the U.S. dollar.
Bitcoin has been “one of the best performers” because the economic impact of The coronavirus took effect in April. However, Greenspan pointed Out that BTC has been up roughly 7 percent for 2020, in sharp contrast to petroleum, which went negative last week.