S&P 500 and Bitcoin, different twins

While the price of Bitcoin and the price of the S&P 500 have been largely correlated in recent years, it is now likely that they will continue to be correlated when it comes to bottoming out as well as restarts.

S&P 500 and Bitcoin: is it time to “buy the dip”?

The so-called binge watching looms unchanged among analysts during the bear market: the continuous search for the bottom always causes a part of investors to invoke the inflated “Buy the dip”, especially in certain phases, which usually correspond to the beginning of the bear market and the end of the market’s patience .

Invoking the exhortation “Buy the dip” at the beginning of the Bear market is a kind of warning, as one believes that at that stage the bottom is far away.

For a time people forget the mantra sentiment brings back that fateful phrase, and that’s when the market’s lows are often really registered.

Clearly, bear market lows are not determined by sentiment, or at least not entirely. Other things include the fundamentals and concurrency of data that can highlight it, although the fact is that beyond the statistical data that can give an indication, security remains largely a dream.

Trade in the cryptocurrency market is declining quite rapidly, just over a year after the start of this bearish phase calls to “Buy the Dip” return.

As often the bottom will not come when hailed, but it should only be discovered by being alive.

Analysis of the S&P 500 Index

In the final ending S&P 500 gave his lowest grade by touching $3,655.04with the worst result since 2020.

Analysts had expected a drop, but not that this would be so sudden, let alone in a single session.

Meanwhile, Bitcoin’s price is seeing $19,091, and many analysts see the digital gold’s decline far from stopping.

Some forecasts provide Bitcoin to $12,000, but there are some who even point to $8,000, conjuring a value far distant in time.

In short, once again the S&P 500 and Bitcoin share a common fate. According to some, this is also due to the fact that, as the main index of the world’s largest stock exchange (Wall Street), the former and the most capitalized cryptocurrency acts in a way as the head of the pack by recording the biggest losses in the bear phase and the strongest moves in the bull phase.

Grayscale Bitcoin Trust is accumulating

While classic finance and crypto continue their bearish trajectory, investment funds are no exception, especially those linked to Bitcoin as it is the most capitalized currency.

The Grayscale Bitcoin Trust (OTCMKTS: GBTC ) is the longest-running and one of the most popular Bitcoin (BTC) funds, and it has proven to be no exception by posting unflattering numbers.

This Bitcoin fund recently hit an all-time low of 35.18% relative to Bitcoin spot prices this week, and GBTC’s spot discount has been in the red for a whopping 577 days. It has essentially not matched earnings since 26 February 2021.

Currently, the premarket value of the GBTC trust is $11.20 and according to the Securities and Exchange Commission (SEC), there are 643,572 BTC held by the trust which is equivalent to 3.065% of Bitcoin’s total supply (21 million units).

It is widely believed that the fund’s poor performance should be highlighted in the fact that there are many funds on exchanges around the world and that although Grayscale has tried hard to get GBTC accepted as an ETF (exchange traded fund), it has not been able to take the result home.

However, the game is not yet over in the wake of the latest rejection by the SEC as Grayscale has sued the Security and Exchange Commission, which must answer for its decision.

Bob Loukasa well-known American entrepreneur, discussed the GBTC situation:

“The grayscale bitcoin discount has extended a record 35% at the expiration point in October 2020, but institutions if in the coming months BTC declines to a lower youth level, this [is] a good alternative.

They must be willing to hold [the] point at which a redemption option unlocks value.

Nevertheless, it must be limited to the discount.”

In accordance Tom Mitchelhill:

“Who thought to be exposed to [bitcoin] via GBTC was a good idea in the first place?

They are literally selling it at a 36% discount and the market still refuses to touch it.”

“Some of us have talked about needing to see $8-12,000 BTC before we can roll back and get another bull [in progress]. It’s still not there yet. My company has set this goal for about a year +. Oh, and the GBTC discount is also a problem.”