Fun

Keiser Insists ‘Bitcoin Inversely Correlated To USD Not Stock Markets’ After Crypto Market Tumble

News Feed - 2020-09-23 10:09:52

Keiser Insists "Bitcoin Inversely Correlated To USD Not Stock Markets" After Crypto Market Tumble


Reports that global banking giants helped criminals launder money for close to two decades helped spark the crash of global stock markets on Monday, September 21. Also tumbling in tandem with stocks were cryptocurrencies thus leading to renewed concerns that digital assets are intertwined with the global financial system. However, these concerns are dismissed by Max Keiser, a bitcoin pioneer and a Wall Street analyst who insists that bitcoin behaves differently.


Keiser’s latest comments about bitcoin were prompted by remarks made by one Twitter user who questions the commonly held view that cryptocurrencies are immune from the global financial system. In a tweet, the user expresses concern that each time “when stock markets go down bitcoin gets pummeled.” The user insists that “if bitcoin is ever going to be successful it needs to break away from bankings thumb. Until then.”


In his response, Keiser argues that “bitcoin, like gold, is inversely correlated to the $USD – *not* the stock market.” In a warning to bitcoiners, Keiser says “don’t be fooled by randomness.”




Just like Keiser, many bitcoin supporters are adamant that the top cryptocurrency follows a different path to that of company stocks. They point to the movement of the crypto shortly after crashing by 40% on March 12, the so-called black Thursday. At the time of the crash, global markets were also in the red yet it is bitcoin which appears to have recovered and grown at a much faster pace than stocks.


To illustrate, an observation of data available on Markets.bitcoin.com shows that bitcoin nearly doubled in value between March and September 2020. Specifically, on March 21, bitcoin, which dominates the crypto market, traded at $5,792. Yet by end of day on September 21, the leading digital asset traded at $10,499.




In comparison, the Dow Jones Industrial Average, the widely-watched benchmark index in the U.S. for blue-chip stocks, closed March 20 at 19,173 points. However, exactly six months later, the index closed the day on September 21 at 27,147 points, representing growth of 41.5% from March.




It is seemingly this data that convinces some bitcoiners that the cryptocurrency has an inverse relationship with fiat currencies like the USD.


What do you think of Keiser’s assertions about bitcoin’s relationship with the USD? Tell us what you think in the comments section below.


 Turbulent Crypto Markets Expected - 87K Worth of Bitcoin Options Set to Expire on FridayMARKETS AND PRICES | 2 days agoOver 40 Bitcoin Forks Are Down More Than 98% Since 2017"s Forking FiestaMARKETS AND PRICES | 3 days agoTags in this storyBitcoin, Black Thursday, Cryptocurrencies, Dow Jones Industrial Average, Financial Institutions, Max Keiser, max keiser bitcoin, Money Laundering, Stock Market Crash, Stock Markets


Image Credits: Shutterstock, Pixabay, Wiki Commons, Stacy Herbert / CC BY 2.0Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here.Show comments

News Feed

PayPal enables business accounts to buy, sell, and trade crypto
Vince Quill3 hours agoPayPal enables business accounts to buy, sell, and trade cryptoIn 2020, PayPal began allowing individual retail customers to buy, sell, and hold crypto directly from their PayPal and Venmo accounts.
Artificial Intelligence and Cryptocurrency: The Rise of AI-Focused Projects in 2023
Artificial Intelligence and Cryptocurrency: The Rise of AI-Focused Projects in 2023 Trends show that artificial intelligence (AI) will be a major topic in 2023, as data indicates a
BlackRock’s spot Ether ETF amasses nearly $900M since launch
Brayden Lindrea4 hours agoBlackRock’s spot Ether ETF amasses nearly $900M since launchBlackRock’s iShares Ethereum Trust has almost hit $900 million in total inflows after just 11 trading days.1705 Total views22 Tota
Turner Wright3 hours agoSuperseding indictment against Sam Bankman-Fried includes using $100M for campaign contributionsSam Bankman-Fried allegedly used more than $100 million in user funds “in campaign contributions t
RBI Confirms Crypto Not Banned in India
RBI Confirms Crypto Not Banned in India The Reserve Bank of India (RBI) has confirmed that cryptocurrency is not banned in India. During the latest supreme court hearing of the c
Spot Ethereum ETFs post $113M of outflows on second day of launch
Tom Mitchelhill3 hours agoSpot Ethereum ETFs post $113M of outflows on second day of launchThe “newborn” eight ETFs didn’t manage to outrun the $327 million of outflows from Grayscale’s recently converted Ethereu
US senator withdraws support for Elizabeth Warren’s anti-crypto bill
Tom Mitchelhill4 hours agoUS senator withdraws support for Elizabeth Warren’s anti-crypto billRepublican Senator Roger Marshall has withdrawn as a cosponsor for an anti-crypto bill he co-created with Senator Elizabeth
Dogecoin Price Skyrockets 325%, Crypto Fueled by Elon Tweets and Redditors
Dogecoin Price Skyrockets 325%, Crypto Fueled by Elon Tweets and Redditors The infamous meme token dogecoin has been skyrocketing in value rising more than 325.2
Modern Warfare Beta Boldly Abandons Minimap, But Not for Long
Call of Duty Modern Warfare fans have hit the trenches after developer Infinity Ward controversially chose to abandon the in-game minimap. | Source: Activision/Infinity WardCall of
Visa Files Patent for Cryptocurrency System to Replace Cash
Visa Files Patent for Cryptocurrency System to Replace CashVisa International has filed for a cryptocurrency system patent that is meant to replace physical currency. The system, wh
Dubai Property Developer Completes Real Estate Deals Worth $50M via Crypto
Dubai Property Developer Completes Real Estate Deals Worth $50M via Crypto According to an executive with the Dubai-based DAMAC Properties, the real estate development “comp
Metaverse Tokens Outperform Top Crypto Assets in 2023 With Decentraland’s MANA Leading the Pack
Metaverse Tokens Outperform Top Crypto Assets in 2023 With Decentraland"s MANA Leading the Pack During the first month of 2023, the top two leading cryptocurrencies, bitcoin and et