Bitcoin Price
Top Macro Investor Expects Bitcoin-S&P 500 Correlation to Break Down
Nick Chong | Oct 23, 2020 | 10:00
Bitcoin has pushed seriously higher over the past few days despite some mixed performance in the S&P 500. The leading cryptocurrency is up around $2,000 over the past seven days, having rallied as high as $13,250 after bottoming at $11,200 last Thursday.
Prominent macro analyst Raoul Pal expects that BTC will continue to outperform other macro markets in the future.
Bitcoin to Decouple from S&P 500, Dollar: Prominent Macro Analyst
Pal recently went as far as to say that he thinks that Bitcoin will seriously decouple from the stock market and the U.S. dollar.
This comment comes after Bitcoin has had varying degrees of correlation with these two markets over the past few months. For instance, when the U.S. dollar spiked massively by 10-15% in March, BTC plunged by over 50% in the span of 24 hours.
On how he expects the correlation to play out, Pal wrote:
“Gold is breaking down versus bitcoin, as expected cc: @michael_saylor. Everyone take note. The next thing I’m expecting is the correlations between BTC and the dollar and BTC vs equities to break down too… let’s see.”
Gold is breaking down versus bitcoin, as expected cc: @michael_saylor Everyone take note. The next thing I'm expecting is the correlations between BTC and the dollar and BTC vs equities to break down too… let's see. #Bitcoin pic.twitter.com/RoPUSFbmvZ
— Raoul Pal (@RaoulGMI) October 22, 2020
Bitcoin breaking higher while the U.S. dollar isn’t dropping but actually gaining slightly is a good start. But when the full decoupling will take place remains to be seen.
What Will Drive BTC Away From the S&P 500?
Pal is a former head of hedge fund sales at Goldman Sachs, a hedge fund manager, and the current CEO of Real Vision. His voice carries a lot of weight in the world of macroeconomic analysis.
He recently said that he thinks that the growing institutional interest will allow the coin to break seriously higher in the years ahead. Speaking in an interview with Stansberry Research, Pal commented:
“Just from what I know from all of the institutions, all of the people I speak to, there is an enormous wall of money coming into this. It’s an enormous wall of money — just the pipes aren’t there to allow people to do it yet, and that’s coming. But it’s on everybody’s radar, and there’s a lot of smart people working on it.”
Pal has said in the past that he thinks Bitcoin may be the best investment of the current macro environment, so much so that he said all other assets may be “inferior.”
The investor is putting his money where his mouth is: he said that he has over 50% of his net worth in Bitcoin right now, along with some exposure to Ethereum.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Top Macro Investor Expects Bitcoin-S&P 500 Correlation to Break Down
