- Bitcoin markets are notching up slow gains en route to USD 7,000
- Wealth influencer Robert Kiyosaki had been Tweeting Bitcoin promotions for the past several days, with some now saying that it will be the new norm for Generation Z
- Binance Research finds a fair level of Bitcoin price correlation with stock markets but believes this trend won’t last much longer
Bitcoin markets are roaring, but after puncturing USD 7,200 briefly (CoinDesk), it has now continued the slow climb to that point again in slow and sure fashion, with still a 3% gain looking good on a 24-hour basis. Ethereum (ETH) and Litecoin (LTC) are among those following suit, marking up stronger numbers than yesterday as the bulls look to end Friday on a high note.
One of the biggest items of news for the past three days comes from a blast from the past in the shape of Robert Kiyosaki, the famed author of international bestseller ‘Rich Dad, Poor Dad’. The worldwide popular wealth advisor has now taken to Twitter to talk down the shortcomings of traditional finance and debt, while promoting precious metals and Bitcoin.
He first called Bitcoin the “people’s money” on April Fool’s Day, and then continued to criticize the ever-declining value of US dollars, before again urging people to save up on Bitcoin in addition to gold and silver. His first post read:
“Lesson 5. SAVE MONEY: RU NUTS? Why save money when QE FED counterfeiting is printing trillions of fake dollars-$82 billion a month to $125 billion a day? Why save when ZIRP, zero interest policy pays losers zero? Save gold-god’s money or Bitcoin-people’s money.”
Most responses to his Tweet have been full of positive words and praise, with one author saying that everyone from generations X, Y and Z should save Bitcoin as part of a retirement plan. Sylvain Saurel, editor of In Bitcoin We trust, also agrees that the younger Y and Z generations are going to most likely be the ones to have positive opinions of Bitcoin. Writing in The Startup blog, he says that Bitcoin will ring true with the millennial desire for “liberation” and may one day soon use Bitcoin on their smartphone without even realizing it. He deliberates:
“Those who will be curious to find out what the current monetary and financial system was like will be shocked.They will wonder how previous generations were able to accept the fact that a few people systematically decided to devalue what the majority of people owned.”
Meanwhile, Binance Research has come up with new numbers that show that the current stock market and Bitcoin correlation in price may no longer hold for long. Its new report found a “moderate” positive correlation in Q1 2020, noting that gold had not been in that pattern, even if Bitcoin’s 10% drop outperformed the S&P’s 19% dip. With correlation at 0.57, this was also displayed on daily work day returns.
All the same, Binance Research says that Bitcoiners need not worry as:
“Despite Bitcoin displaying a significant positive correlation with US equities in the first quarter of 2020, this high correlation coefficient remains very unlikely to persist in the medium to long term.”
Similar analyses have been made by others like Pantera Capital CEO Dan Morehead, who had earlier said that Bitcoin’s historical correlation with stocks was not new, but it rarely lasted beyond the first free months. who told investors that historically speaking Bitcoin’s correlation with stock market falls only lasted for the first few months.
Of course, the debate on whether Bitcoin correlates or not has only been fairly new, because Bitcoin supporters were taken aback when Bitcoin crashed along with stock markets in this month’s Black Thursday.
The true correlation really is with altcoins, who inevitably rise and fall with the fate of Bitcoin.
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