The Bitcoin course is not doing well and the American stock exchange also suffers from the uncertainty that Trump sows, in combination with the weaker data from the economy. At the time of writing we see that clearly at the fair in the United States, where only 48.11% of companies above their 200-day average actions on the S&P 500.
What does that mean for the market?
In the first place, this means relatively low percentage that a large part of the companies in the S&P 500 goes through a difficult period. There are fewer and fewer shares that continue to perform relatively strongly and can remain above their 200-day average.
In addition, it is also important to see that it yielded a soil in November 2023.
Although it is dangerous to predict soils, these are often indications that the chance of a price floor increases. Nobody knows exactly what the bottom is. That also depends on unpredictable issues such as Trump’s trade policy and the further development of the US economy.
We also clearly see that there is panic on the market, who are currently removing large quantities of capital from the market. Bloomberg published the graph below, in which we see that private individuals of the trade pulled $ 1.2 billion out of the market in the first hour yesterday.
What does this mean for Bitcoin?
Bitcoin generally has a high correlation with the US stock market. That has nothing to do with the assets themselves, because in terms of properties, the digital currency cannot of course be compared with a share of Apple or Nvidia.
Nevertheless, investors often regard Bitcoin and such shares as a similar asset. It’s not for nothing that we often hear that Bitcoin acts as a kind of tech share.
For that reason it is also interesting for Bitcoin to keep an eye on the S&P 500. If the American stock exchange starts to form a soil, then there is a chance that the Bitcoin course will also move towards a more powerful period.
For the time being, however, there are no clear indications for this, and we are therefore in uncertainty.
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Source: https://newsbit.nl/amerikaanse-aandelenmarkt-op-zwakste-punt-sinds-november-2023/
