How Bitcoin’s strong correlation to stocks could trigger a drop to $8,000
— Bitcoins, Risk, Strong, Stocks, Correlation, Traders, Drop, Bitcoin, Trigger, Futures — 1 min read
Bitcoin (BTC) price chart from past couple of months reflects nothing more than a bearish outlook. Bitcoin has consistently made lower lows since breaching $48,000 in late March. The difference in support levels has been getting wider as the correction continues to drain investor confidence and risk appetite. The negative newsflow is reflected in the CME’s Bitcoin futures contracts premium. Despite the 11% price drop in three days, top traders have increased their longs despite the price drop. For this reason, pro traders are not rushing to buy the dip because Bitcoin's correlation to traditional assets remains. The CME futures contract premium is not concerning because Bitcoin is struggling with the $20,000 resistance. The lack of a premium in the futures contract Source