And BTC is back above 20k, while the stock market is running behind!
Decoupling of crypto and stock markets
In the last year a lot has been said about the coupling of the crypto market with the stock market.
While more and more institutional players have jumped into the crypto market, Bitcoin and its brothers have been dropping together with the stock market during this bear season. And it is kind of understandable, as risk assets get dumped, and non-risk assets get bought during such periods.
And crypto is still considered as a risk-on asset.
But today, I have seen a disturbance in this coupling. The stock market has a good day, and is jumping up between 1 and 1 and a half procent worldwide. Nothing out of the ordinary, as it has tanked a lot in the past month. And so did Bitcoin and other crypto currencies. But today, Bitcoin went back up above 20000 USD. A rise of about 4 %. And it has risen more the past few days too. While the stock market had difficult days. The coupling of both, has somewhat fell apart. I wouldn't talk about a complete decoupling yet, but Bitcoin has risen a lot more than the stock market has.
Good news for crypto
In my opinion, this is very good for all of us. This means we can expect a very nice pump for crypto once the stock markets resurrect again. And I know, with all the bearish news, people don't expect that any time soon. But I am not so pessimistic about that as most are. This market has gotten beaten a lot. And it will rise again, that is just a certainty. There are already signs of inflation slowing down, and once recession officially hits, we can expect the markets to slowly start their climb back up again. As the market has already priced in that recession.
So, a next bull run on the stock markets, could mean a massive bull run on crypto. And I should scrap that word 'should', as I am very certain of this.
The hardcore HODL community, and the institutional investors combined together are going to create a massive bull run. And I expect it to start by the end of the year, and beginning 2023.
I may be wrong, but I also may be very correct!
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