• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
Breaking News: Breaking: DCG And Genesis Close Initial Agreement With Creditors
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
Bitcoinist.com
No Result
View All Result
Breaking News: Breaking: DCG And Genesis Close Initial Agreement With Creditors
man holding bills featured image for Bitcoin article
Advertisement

Renewed Bitcoin Rally May Be Triggered by This $2 Trillion Investor Cash Pile

Yashu Gola by Yashu Gola
3 years ago
in Bitcoin
0
Advertisement
  • Bitcoin eyes a new price rally as investors assess the provisional reopening steps taken by the U.S. states.
  • Analysts believe a restrained second wave of Covid-19 infections could increase risk sentiment.
  • There is now around $2.3 trillion sitting in money market funds and banks to reenter markets.

Bitcoin’s growing correlation with the U.S. equities could lead its spot price further higher, according to a suggestive analysis.

Analysts at Unigestion said in a note that investors are holding $2.3 trillion worth of cash and cash-based securities on the sidelines. The U.S. money market funds, for instance, have attracted an inflow of $1.1 trillion during the coronavirus pandemic. Meanwhile, bank deposits have shot up to $1.2 trillion since stocks crashed in February.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!

The Swiss investment management firm tracked hedge fund strategies to realize that they find risk-on assets attractive at their lower positionings. It further noted that declines in the U.S. equities’ realized and implied volatility could lead institutional investors in favor of holding riskier assets.

“This mountain of cash could be invested in the short term if the Covid-19 curve continues to decline,” Unigestion told FT.

Bitcoin Could Benefit From Economy Reopening

Unigestion’s assessment surfaced after Bitcoin, and the Wall Street index closed higher in sync amid cautious reopening of economies across the world. While the cryptocurrency surged 1.58 percent, the U.S. benchmark S&P 500 index climbed 0.9 percent.

Analysts noted that easing lockdown policies could bring economies back in business, which would lead up to higher, if not the best, corporate earnings in the second quarter. Helped further by accommodating central bank policies, U.S. firms have scope to give back employment opportunities, long after witnessing a stunning rise in joblessness (over 20 billion).

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!
unemployment, bitcoin
US labor data | Source: Vox

Under that scenario, investors can take a portion of their cash holdings to invest it across the risk markets.

Bitcoin could benefit as well, owing to its long-term bullish scenario post halving. Meanwhile, the cryptocurrency has tailed the gains and losses in the S&P 500 with a record positive correlation. And given the fears of the second wave of coronavirus, both retail and institutional investors could hold it for its short-term, higher risk-reward profile.

Downside Sentiment Persists

Market sentiment is very volatile. As such, the trajectory of global markets will depend on how the coronavirus pandemic fares after reopening economies tentatively. A medium-term loss of economic activity would end up reducing demand for all the unnecessary assets, even Bitcoin.

The massive injection of money by central banks can only delay a bear market. Should this bear market continue longer than it has, investors will dump their BTC and stock positions to seek shelter in cash, once again.

As BitMEX’s CEO wrote in a recent newsletter:

“Bitcoin will be owned unlevered. Could the price retest $3,000? Absolutely. As the SPX rolls over and tests 2,000 expect all asset classes to puke again.”

Photo by Sharon McCutcheon on Unsplash
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

Bitcoin

Bitcoin Long-Term Holders Are Still Selling At Loss: Glassnode

9 mins ago
Bitcoin BTC

Will Bitcoin And Ethereum Crash? DCG Sells Grayscale Trust Shares

3 hours ago
Bitcoin

Top Crypto Miner At Record Bitcoin Production, Bear Market Over?

14 hours ago
Bitcoin price

This Will Be Important For Bitcoin And Crypto This Week

1 day ago
New record: 49% of Bitcoin Supply Has Not Changed Hands in 2 Years

New Record: Half Of Bitcoin Supply Hasn’t Changed Hands In 2 Years

2 days ago
Bitcoin Derivatives Markets Volumes Show Bullish Trend After 2022 Downturn

Bitcoin Derivatives Market Volumes Show Bullish Trend After 2022 Downturn

3 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
Metaspins
Metaspins
1xBit
1xBit
Coinplay
Coinplay
K8
K8
Vegas Casino
Vegas Casino

Sportbooks

Coinplay
Coinplay

Press Releases

  • The Crypto Bull Market Trend Has Started! What Does This...

    9 mins ago
  • Orbeon Protocol (ORBN) Grows 1625% During the Presale...

    39 mins ago
  • The 7 Best Altcoins to Buy Now to 10X Your Money

    1 hour ago
  • These 7 Best Cryptocurrencies to Buy During Presale

    1 hour ago
  • Which Is The Best Crypto Meme Coin To Invest In 2023...

    2 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.