Crypto Market Wrap October 7: Bitcoin (BTC) Regains $10.6K
October 7, 2020
Market Wrap: Bitcoin’s price is making gains Wednesday, recovering from a spate of selling Tuesday that coincided with U.S. President Donald Trump’s tweet calling off stimulus negotiations with lawmakers. Bitcoin was able to hit $10,650 approx. around 500pm ET today.
Michael Rabkin, Head of Institutional Sales at DV Chain and Head of Partnerships at DVeX told CoinDesk that “crypto markets are still very highly correlated to traditional markets and the broader economy as a whole. We believe that any time markets tick up or tick down this is exaggerated in crypto. The correlation is still very high.”
Bitcoin may be operating in tandem with traditional markets as of late, but its returns over the past month have been beating global stock indexes.
Michael Rabkin also noted that as more sophisticated investors jump into crypto, it may ebb and flow with the traditional market more than ever before. “As bitcoin is becoming a new asset class for institutional market participants, its sensitivity to macro events will rise over time.”