Experts point out to the reasons for the growing BTC-equity correlation. BTC/USD has calmed down after volatile start fo the week. Safe-haven narrative shattered In recent months, Bitcoin price has been correlated to equities and acted in tandem with risk assets. The first digital asset dropped in response to coronavirus outbreak and reacted negatively to the worsening global macroeconomic conditions. This development questions Bitcoin status as an uncorrelated asset that can be used as a hedge during turmoil. However, according to Denis Vinokurov, head of research at Bequant, a London-based digital asset firm, Bitcoin’s correlation with equities has another important implication. This is important and it also goes to show how institutionalized crypto market has become, and it also suggests that liquidity crunch in one market may have a contagion impact on other markets. He further explained that worsening liquidity conditions force market participants to adjust their portfolios and deal with margin calls, which makes alternative assets less attractive. BTC/USD settles down in a range Bitcoin (BTC) is changing hands at $7,940 during early Asian hours. The first digital coin has stayed mostly unchanged both on a day-to-day basis and since the beginning of Tuesday as the market consolidate major losses incurred during the previous trading days. Bitcoin’s average trading volume is registered at $44 billion, while its market dominance increased to 63.9%. Notably, according to Intotheblock data, 60% of active Bitcoin accounts are in the money at the current BTC price. This is better than 52.24% registered on March 9, when BTC hit the recent low of $7,633. Bitcoin’s price drop during the last 7 days of 13% led to an even bigger decline of 27% in the number of addresses in the money compared to the previous week, Intotheblock commented. Currently, over 2 million addresses have their breakeven price on approach to $7,700, which means that this level might serve as strong support. It is closely followed by the recent low of $7,633. Once it is out of the way, the sell-off is likely to gain traction with the next focus on $7,200 reinforced by SMA100 weekly. Bitcoin has been trading above this line since the beginning of January. On the upside, the initial resistance is created by psychological $8,000. However, a stronger barrier comes at $8,700 with over 3 million addresses that may seek closing out at a breakeven point. This area is reinforced by SMA50 weekly ($8,640). A sustainable move above this resistance will allow for an extended recovery towards $9,000. BTC/USD weekly chart FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street Crypto News share Read Next Cryptocurrency market update: Bitcoin unrelenting in the journey to $100,000 FX Street 3 years Experts point out to the reasons for the growing BTC-equity correlation. BTC/USD has calmed down after volatile start fo the week. Safe-haven narrative shattered In recent months, Bitcoin price has been correlated to equities and acted in tandem with risk assets. The first digital asset dropped in response to coronavirus outbreak and reacted negatively to the worsening global macroeconomic conditions. This development questions Bitcoin status as an uncorrelated asset that can be used as a hedge during turmoil. However, according to Denis Vinokurov, head of research at Bequant, a London-based digital asset firm, Bitcoin's correlation with equities has another important implication. … Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.