Zorax Talks: Bitcoin, S&P500, and Cryptoindex.
CryptoIndex is a tool for exposure to the cryptomarket and serves as a smart benchmark for all cryptocurrencies. The AI-based Cryptoindex algorithm is continuously analyzing more than 2000 coins applying over 200 factors, processing more than 1 million signals per second to provide a highly sophisticated index of the top 100 coins.
Hello, our dear community! Today with you again the rubric Zorax talks — today the topic of our day is Bitcoin growth along with the S & P500.
Introduction
The history of the emergence of Bitcoin coincided with the 2008 crisis. Bitcoin grew right along with the S&P500 index, which at that time was as a benchmark in the US market.
The graph below shows that the emergence of cryptocurrency almost coincided with the previous crisis:
Monthly index chart S&P 500 от TradingView
As many users have noticed, that their growth was almost synchronous. However, looking at the charts, you can pay attention to the pattern that the world is on the verge of another global crisis. So, the graph below shows the ratio of the value of the exchange goods index to the S&P500:
This figure is now at a 50-year low. In the past, when this ratio was at extremely low values, followed by a long-term period of stagnation of the stock market.
For example, the previous low was followed by the collapse of the index of high-tech companies NASDAQ Composite. It is noteworthy that now the ratio of the value of the commodity index to the S & P 500 is even lower than on the eve of the collapse of the dotcoms — at about 1972 levels. Then, half a century ago, the so-called “bubble of the Nifty Fifty” was formed, that is, the fifty most popular stocks of American companies in the 60–70s, which were notable for their rapid growth and price-earnings ratio.
Market Performance
It is also worth noting that in recent months there has been a pronounced inverse correlation between Bitcoin and the S & P 500:
This may indicate that an increasing number of investors are using “digital gold” as a hedging instrument in the face of increasing global uncertainty.
Thus, with the exception of the first year of life, Bitcoin did not exist during periods of global recessions. This makes many market participants think about how the first cryptocurrency will lead in the new conditions, amid uncertainty and panic associated with sharp price fluctuations of traditional financial assets. Thus, according to analysts at Grayscale Investments, the gaining momentum in the US-Chinese trade will continue to influence the price of bitcoin.
Bitcoin and Cryptoindex
Many professional investors brought classic tools to the new market, such as trading bots, ETFs and indices.
The future of crypto indices is obvious. After all, this market needs its own “benchmark” and our project has every chance to take it.
What do you think about future of indexes? Write your thoughts in our chat!
The AI-based CryptoIndex algorithm is constantly learning by consuming huge amounts of data rapidly making decisions and choices that humans would struggle to match.
You can always check the current CIX100 composition on our websitehttps://platform.cryptoindex.ai/
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