Wondering why BTC is rising today? Simple, it's following stocks upwards. Bitcoin has been tracking the movements of the S&P 500 since the crash in February. In recent weeks, they have moved even closer together. But now a divergence has opened up, as stocks climb higher, and Bitcoin is starting to catch up.
Remember, this doesn't mean Bitcoin will continue to rise - the gap might close through stocks falling instead of Bitcoin rising! But for those who like a nice short-term arbitrage opportunity, selling stocks while buying BTC might now be appealing.
Eventually, the close correlation between stocks and Bitcoin will probably come to an end, so be careful out there.
Remember, this doesn't mean Bitcoin will continue to rise - the gap might close through stocks falling instead of Bitcoin rising! But for those who like a nice short-term arbitrage opportunity, selling stocks while buying BTC might now be appealing.
Eventually, the close correlation between stocks and Bitcoin will probably come to an end, so be careful out there.
Comment:
The light-blue shaded area on the chart represents the divergence between Bitcoin and S&P500.
THE CRYPTO TRADER: How anyone can make money trading Bitcoin and other cryptocurrencies
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Published by Harriman House.
This link should take you to your local Amazon site.
getbook.at/TheCryptoTrader