Bitcoin

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/understanding-the-correlation-between-bitcoin-sp-500-and-the-us-dollar-index/" data-wpel-link="internal">Understanding the Correlation Between Bitcoin, S&amp;P 500, and the US Dollar Index</a><br></p>
<p style="text-align: justify">The king cryptocurrency is considered within risk markets and frankly, most investors view it like a tech stock. Although <a href="https://en.coin-turk.com/will-bitcoin-rise-analysis-of-support-and-resistance-levels/" data-wpel-link="internal">Bitcoin</a> has proven to be an asset class of its own for a long time, it continues to have a high correlation with the US stock exchange SPX. However, this also opens up an important channel. Here are the details.</p> 
<h2 style="text-align: justify" id="btc-and-sp-500-correlation">BTC and S&amp;P 500 Correlation</h2> 
<p style="text-align: justify">For those who don’t know, SPX or S&amp;P 500 encompasses America’s largest 500 companies. This represents about 75% of the total stock market size in the region. SPX, which generally shares a positive correlation with Bitcoin, responds to macro developments similarly to cryptocurrencies. This is because <a href="https://en.coin-turk.com/bitcoins-future-what-do-crypto-experts-predict-for-btc/" data-wpel-link="internal">BTC</a>, SPX, and the rest of crypto are grouped within risk markets, and this is the investors’ approach.</p> 
<figure id="attachment_296829" aria-describedby="caption-attachment-296829" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" loading="lazy" decoding="async" class="wp-image-296829 size-full" src="https://coin-turk.com/wp-content/uploads/2024/01/The-Block-BTC-Korelasyon.png" alt="" width="1705" height="305">
 <figcaption id="caption-attachment-296829" class="wp-caption-text">
  Source: The Block
 </figcaption>
</figure> 
<p style="text-align: justify">The graph above shows the correlation over the last month. Although the correlation with gold has weakened somewhat, it remains strong with SPX.</p> 
<h2 style="text-align: justify" id="current-commentary-on-sp-500">Current Commentary on S&amp;P 500</h2> 
<p style="text-align: justify">The US stock markets continued their strong performance last week and have been rising for 9 weeks. If the streak completes 11, it could surpass the period from 1985. In 2023, SPX’s gain of more than 24% reflects the increasing expectation of interest rate cuts for this year.</p> 
<p style="text-align: justify"><img loading="lazy" loading="lazy" decoding="async" class="size-full wp-image-296830 aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/01/SPX-2024-Ocak-Yorum.png" alt="" width="1490" height="842"></p> 
<p style="text-align: justify">Despite the profit-taking at 4,793 on the SPX front, the trend is upward. However, the RSI has created a negative divergence, which could be an early warning for a decline. Sellers will struggle to pull the index below 4,690, and the 20-day exponential moving average will continue to act as a key support here.</p> 
<p style="text-align: justify">If we see a bounce from support or the current range, the 5,000 psychological resistance could be tested. And of course, this is positive for BTC. In the opposite scenario, a drop to 4,502 in SPX is expected.</p> 
<h2 style="text-align: justify" id="us-dollar-index-commentary">US Dollar Index Commentary</h2> 
<p style="text-align: justify">The Dollar Index (DXY) measures the performance of the dollar against a basket of selected currencies (with distributions ranging from 57.6% to 3.6% for EUR, JPY, GBP, CAD, SEK, and CHF, in that order). Looking at the DXY performance, there has been a wide fluctuation between 101 and 108 for several months. On December 27, we saw a move to support, and the 102.26 level is expected to take on the role of strong resistance.</p> 
<p style="text-align: justify"><img loading="lazy" loading="lazy" decoding="async" class="size-full wp-image-296831 aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/01/DXY-2024-Ocak-Yorum.png" alt="" width="1492" height="845"></p> 
<p style="text-align: justify">If it drops below 101, the 99.57 level could be seen, which would mean more upside for BTC. A falling DXY (weakening dollar) helps the BTC price to rise.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/understanding-the-correlation-between-bitcoin-sp-500-and-the-us-dollar-index/" data-wpel-link="internal">Understanding the Correlation Between Bitcoin, S&amp;P 500, and the US Dollar Index</a></h5>

Understanding the Correlation Between Bitcoin, S&P 500, and the US Dollar Index

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