Skip to main content

Why Post Debate Stock Market Performance Could Be Bad For Bitcoin

Last night, current United States President Donald J. Trump faced off against former Vice President and challenger Joe Biden in the first of three debates. Data shows, that following each debate, things have turned bad for the stock market, which could, in turn, mean even worse for Bitcoin.

Here’s why the stock market tumbling due to debates demoralizing investors could also spell bad news for the leading cryptocurrency by market cap.

Why The Debate Could Have a Bearish Impact On Bitcoin

Last night, the two top Presidential candidates went head-to-head as the world looked on. The two didn’t do anything to ease the minds of citizens, nor investors.

A “rocky” road to the election is expected to impact Bitcoin and prevent a new all-time high just yet, and last night was a preview as to why.

Neither candidate expects a peaceful transition of power, and already there are questions over the validity of the vote-counting process due to mail-in ballots causing all kinds of issues and turmoil.

Related Reading | Bitcoin Faces Pivotal Quarterly Close, Here’s Why

The uncertainty hanging over political started spilling into markets last night. While the Democratic and Republican leaders debated, the stock market spiked, then the moment the debate ended tanked.

Bitcoin price followed, dropping back down to $10,750, where it currently is attempting to close above the key level ahead of tonight’s monthly close.

This early sign of downward sell pressure due to fear and doubt may just be the beginning of more downside in Bitcoin and the stock market.

bitcoin btcusd debate

BTCUSD Versus S&P 500 Post-Debate Correlation Chart | Source: TradingView

Presidential Showdown Results In Stock Markets Taking A Beating

As depicted in the chart above, the blue line representing the S&P 500 stock market index, began plummeting just as the debate came to a close. Bitcoin’s fall started shortly before that, as the higher risk asset class likely began to feel the pressure of the debate sooner.

The two assets are back trading as tightly correlated as ever, despite constant talk from crypto’s brightest minds expecting a decoupling of the crypto asset from traditional markets any day.

But data shows that post-debate, markets turn down due to the ongoing uncertainty over which candidate’s campaign will ultimately win.

Related Reading | Bitcoin Descending Triangle Hints At Third Downtrend Before Bear Market Finish

According to Ryan Detrick, chief strategist at LPL Financial, the S&P 500 historically posted declines across 5-day, 10-day, and one-month periods following each debate. With only the first of three debates beginning last night, the stock market could be in for a bumpy ride ahead. And due to the ongoing correlation with Bitcoin, the high-risk cryptocurrency market could take another hit.

If it doesn’t, however, the decoupling analysts are calling for will finally come to fruition, and Bitcoin shining while stocks tank, could be just another catalyst that fuels the cryptocurrency’s next bull market – which could be here as soon as the election is over.

Featured image from Deposit Photos, Charts from TradingView


from NewsBTC https://ift.tt/3n8DC7x
via IFTTT
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

DeFi isn’t dead, it just needs to fix these 3 critical problems

It’s been a rough year for DeFi, and it may not get any better until projects focus more on security, regulation and usability. The persistent challenges  decentralized finance  face have been well documented by a handful of analysts and the recent collapse of the Terra ecosystem re-enforced the fact that something is critically wrong with DeFi. I think DeFi today is completely broken for 99% of the population. The promise of a more transparent financial system has been overtaken by greed. UST/LUNA is just the latest in a string of bad developments: — Peter Yang (@petergyang) May 11, 2022 Let's take a look at what experts say DeFi needs to do in order to have another revival.  Improved usability To date, the promise of open and uncensored access to a global decentralized financial system has been largely hampered by the complicated interface, confusing multi-step staking processes and lack of clarity surrounding the yields on various tokens. What do you thi...
Post a Comment
Read more

ENS DAO delegates offer perspective on DAO governance and decentralized identity

AlphaWallet CEO and Spruce co-founder talk about their roles as contributors to the Ethereum Name Service following the project's recent airdrop. Earlier this month, the Ethereum Name Service, or ENS, formed a decentralized autonomous organization, or DAO, for the ENS community.  Cointelegraph spoke to two ENS DAO delegates who applied for the opportunity to represent the community and stay involved in the decision making process: Victor Zhang, CEO of AlphaWallet, an open source Ethereum wallet, and Gregory Rocco, co-founder of Spruce, a decentralized ID and data toolkit for developers. Zhang spoke about his experience as an external contributor to ENS and an early supporter since 2018. Zhang initially sought to help ENS by offering Alpha Wallet as a user-friendly tool for  resolving .eth names and cryptocurrency wallet addresses. Essentially, if a user inputs an .eth name in the AlphaWallet, it will show the wallet address, and vice versa using reverse resolution. Alpha...
Post a Comment
Read more

National Futures Association adds rules for members handling digital assets

The CFTC-linked self-regulatory organization (SRO) has disclosure rules for members engaging in activities with BTC and ETH; now, standards of conduct are being added. The National Futures Association (NFA), the United States self-regulatory organization for derivatives markets, has issued a new compliance rule addressing members’ conduct. The new rule complements requirements issued in 2018. The NFA has “well over 100” members that engage in activities with digital asset commodities, but no way to address fraud or misconduct committed by those members, the organization explained to secretary of the Commodity Futures Trading Commission (CFTC) Christopher Kirkpatrick in a Feb. 28 letter as it submitted the proposed new rule for approval. The new rule is modelled on the NFA’s antifraud rules for exchange traded futures and swaps transaction and retail foreign exchange. The NFA is the only registered self-regulatory organization that has delegated authority from the CFTC, giving it a...
Post a Comment
Read more