{"id":429514,"date":"2020-07-04T02:00:30","date_gmt":"2020-07-04T02:00:30","guid":{"rendered":"https:\/\/wncen.com\/?p=429514"},"modified":"2024-06-11T14:04:44","modified_gmt":"2024-06-11T14:04:44","slug":"bitcoin-remains-a-risk-on-asset-after","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-remains-a-risk-on-asset-after\/","title":{"rendered":"Economist: Bitcoin Remains a \u201cRisk On\u201d Asset After Reacting to Payroll Data"},"content":{"rendered":"
Bitcoin saw some slight turbulence over the past few days, with its price rallying as high as $9,300 before facing a rejection that caused it to slide beneath $9,000 for a brief period.<\/p>\n
This volatility appeared to be directly linked to news regarding US payroll numbers, signaling that the cryptocurrency presently remains highly correlated to the traditional markets.<\/p>\n
Much to the chagrin of buyers, this throws some cold water on the \u201csafe haven narrative\u201d that many investors<\/a> have been pointing to as a potential catalyst for further upside.<\/p>\n Nevertheless, there is still a strong case to be made that the cryptocurrency\u2019s close ties to the traditional markets will help boost the benchmark digital asset\u2019s near-term outlook.<\/p>\n Bitcoin\u2019s correlation with the stock market<\/a> first became clear in late-February, when the asset\u2019s price began declining in tandem with the benchmark stock indices.<\/p>\n This correlation grew in March and persisted throughout May, but did show some subtle signs of breaking in June.<\/p>\n Although many investors still believe that the cryptocurrency is a \u201csafe haven asset\u201d that will ultimately benefit from turbulence within the traditional markets, its recent price action seems to suggest otherwise.<\/p>\n Earlier this week, Bitcoin\u2019s price rallied to highs of $9,300 before facing a rejection that led it lower.<\/p>\n This movement came about in close tandem with that seen by the benchmark stock indices, which all pumped on positive news regarding payroll data in the US.<\/p>\n The latest set of Non-Farm Employment data showed that the US labor market created a total of 4.8 million jobs \u2013 this signals that the economy is recovering quickly.<\/p>\n BTC reacted to this news in tandem with the traditional markets, an occurrence that one economist\u00a0claims<\/a> is proof of it being a firm \u201crisk-on\u201d asset.<\/p>\n \u201cMove was small, yet today was the first time ever BTC traded payrolls like a traditional asset. Among economic data releases, US payrolls is one of the two largest sources of price volatility. The market is treating bitcoin as a risk-on asset, not as digital gold.\u201d<\/p><\/blockquote>\nBitcoin Remains Firm \u201cRisk On\u201d Asset \u2013 Reacts to News Regarding US Payroll Data<\/strong>\u00a0<\/strong><\/h2>\n
BTC\u2019s \u201cRisk On\u201d Status Could Boost It in the Near-Term<\/strong><\/h2>\n