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In this episode of NewsBTC’s daily technical analysis videoswe compare the Bitcoin price to the S&P 500, WTI Crude Oil, Gold and the almighty dollar via the DXY.
Watch the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): October 4, 2022
Stock Market Correlation With Crypto Continues
For starters, comparing the S&P 500 vs Bitcoin, shows that Bitcoin tends to top before the stock market. Importantly, BTC and the SPX are more closely correlated than in the past.
This is notable because, along with Bitcoin, US stock indices have risen sharply. Both asset classes have fallen significantly from all-time highs, so this is nothing to celebrate just yet.
Bitcoin tops well ahead of the SPX | Source: BTCUSD on TradingView.com
Oil drops slightly after BTC, but rises sharply
In yet another macro equation with WTI Crude Oilwe can see that oil tends to follow crypto and stocks somewhat.
During corrections, the oil price often falls even more sharply than crypto, but is less and less in between. At the same time as Bitcoin and the stock market, oil prices are also rising sharply.
Will the digital golden story return?
If we compare gold with the top cryptocurrency by market cap, we can see that the bullish momentum that started in gold in 2019 went way beyond what Bitcoin was capable of. Nevertheless, this was the birth of the digital gold storyas trade tensions between the US and China escalated under the Trump administration.
As currencies around the world begin to fall apart, gold is also suddenly recovering alongside stocks, oil, Bitcoin and other assets.