Bitcoin is waiting complete uncorrelation with traditional markets – Willie Wu
Willie Wu predicts loss of correlation BTC with stocks thanks to the internal use of bitcoin
The analyst believes that the dynamics of BTC will be determine organic growth users, not external investment
Bitcoin adoption and use rates are the main driver of dynamics coins in future
Cryptanalyst believes this steady trend serves as further confirmation Togo the fact that on today’s day bitcoin functions as a long-term store of value for a growing number of coin holders, or so-called “hodlets”. According to him, this will render yet greater influence on the rate of the first cryptocurrency than hedge funds and whales, and also will finally break the link between BTC and the S index&P 500.
The truth is somewhere near
Wu’s assumptions are based on an analysis of the correlation between bitcoin and stock prices. The close relationship between BTC and the traditional market has been observed over the past several quarters, caused concerns in the ranks of the community about the influence of macroeconomic factors (interest rates, unemployment and inflation) on the dynamics of BTC and cryptocurrency market in the whole, which the located under the influence of their leader’s behavior.
However not everything agree with themes, that this correlation actually exists. For example, Max Kaiser, founder of Heisenberg Capital, believes that “bitcoin is inversely correlated with the dollar USA and is not related to the dynamics of the stock market.
Prophecies of Wu
Woo considers, that the life cycle of bitcoin is approaching a point, after the achievement of which the so-called “internal use” will begin to exert on market more influence on the well-being of the market, than investments from external sources. Explaining what “internal use” is, the analyst writes:
This is the use of bitcoin based on long-term organic growth numbers holders, which contrasts with hedge funds and whales that deposit and withdraw your capital in the course of trading and hedging positions.
Wu believes that traditional investors interact with bitcoin as with means hedging, as a result of which inadvertently correlates with traditional markets.
When this the analyst emphasizes that bitcoin already, probably passed the rubicon of use, which automatically reduces the importance of institutional investment in quality fundamental driver prices the main cryptocurrencies.
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