{"id":87812,"date":"2020-10-13T04:31:59","date_gmt":"2020-10-13T01:31:59","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-decouples-from-legacy-markets-as-breathtaking-rally-predicted\/"},"modified":"2020-10-13T04:31:59","modified_gmt":"2020-10-13T01:31:59","slug":"bitcoin-decouples-from-legacy-markets-as-breathtaking-rally-predicted","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-decouples-from-legacy-markets-as-breathtaking-rally-predicted\/","title":{"rendered":"# Bitcoin decouples from legacy markets as \u2018breathtaking\u2019 rally predicted"},"content":{"rendered":"

“# Bitcoin decouples from legacy markets as \u2018breathtaking\u2019 rally predicted <\/strong>”<\/p>\n

A report published by major U.S.-based crypto exchange Kraken has identified signs the correlation between Bitcoin (BTC), the greenback, and legacy markets, is continuin to weaken.<\/p>\n

Kraken\u2019s September volatility report<\/a> found Bitcoin (BTC) largely maintaining a negative correlation with the U.S. Dollar Index (DXY) since May, despite a brief coalescence between the two markets in early September. <\/p>\n

Bitcoin’s 30-day rolling correlation with U.S Dollar Index: Kraken<\/em><\/figcaption><\/figure>\n

The report attributes BTC\u2019s dollar decoupling to the U.S. Federal Reserve\u2019s plan to maintain zero percent interest rates until at least 2023, in addition to declining growth rates. Meanwhile, Bitcoin has shown positive correlation with the Euro since May.<\/p>\n

The report notes that while the start of the month saw an 8-month low for correlation between BTC and the S&P 500, the correlation would later increase as both markets experienced sideways consolidation.<\/p>\n

Bitcoin\u2019s correlation with gold has remained positive since mid-July, with both markets experiencing bearish pressure over recent weeks.<\/p>\n

Bitcoin’s 30-day rolling correlation with Gold:\u00a0Kraken<\/a><\/em><\/figcaption><\/figure>\n

Looking forward, Kraken anticipates Bitcoin will post a stronger performance in October than in September, and this would be consistent with the trend exhibited in eight of the past nine years.<\/p>\n

The report predicts October will drive an 11% gain for BTC, suggesting Bitcoin will close the month at $11,850 \u2014 a 3% gain from current price levels. However, Kraken notes that Bitcoin has underperformed its monthly average during six of the nine months that have transpired in 2020 so far.<\/p>\n

Kraken’s mild optimism is outshone by the bullish calls from two respected analysts. Former hedge fund manager Raoul Pal recently revealed<\/a> he has shifted more than half of his personal investment portfolio into Bitcoin in anticipation of massive institutional adoption:<\/p>\n

\u201cJust from what I know from all the institutions, all of the people I speak to, there is an enormous wall of money coming into this.\u201d<\/p><\/blockquote>\n

And Alex Saunders from Nugget\u2019s News<\/a> compared the current set up to mid-2017 and predicted that institutional app<\/a>etite for Bitcoin was likely to trigger a \u201cbreathtaking rally\u201d:<\/p>\n

\n

July 2017. $BTC<\/a> at $2700 & investors were scared of Segwit, hard forks & FUD. I shared a write up about a breathe taking rally I saw coming that would surprise us all.<\/p>\n

Last night I shared write up just as bullish. I think a breathe taking rally approaches. #Bitcoin<\/a> #Brrrr<\/a> pic.twitter.com\/ajAlA9IDYd<\/a><\/p>\n

\u2014 Alex Saunders \u200d (@AlexSaundersAU) October 12, 2020<\/a><\/p><\/blockquote>\n

In an update to subscribers last night he said:<\/p>\n

\u201cPublicly traded companies [and] legendary investors are singing from the rooftops about this new asset class at a time when there\u2019s record money sitting in bank accounts looking to find a home.”<\/p><\/blockquote>\n<\/div>\n