Bitcoin (BTC) has begun to differentiate itself from the US S&P 500 stock market index, according to cryptographic statistics Willie Wu.

The first signs of unpaired behavior of BTC and stocks were observed.

Buying from new users provides price support that prevents speculators from lowering the correlation.

NVTP is approaching the valuation of BTC at the natural rate of a blockchain investor.

– Willie Wu (@woonomic) October 29, 2020
He predicted this behavior in late September and confirmed that Bitcoin will break ties with traditional markets due to the influx of new users:

“Bitcoin will soon differ from traditional markets, but will be driven by an internal adoption curve (think growth-style growth), not changes in the perception of traditional investors as a hedging tool.”
Referring to the network value of transactions (NVT), the Woo indicator that was introduced in 2017, the analyst said that the Bitcoin NVT price clearly supports the price despite the sharp decline in the S&P index in recent days.

NVT can be compared to Bitcoins P / E (price / earnings), but since Bitcoin is literally not profitable, Wu replaced the P / E values ​​with the network value (Bitcoins market value) and a daily USD transaction along the sound chain.

Wu added that there are signs that Bitcoin may begin to regain its “safe” status if stocks continue to fall:

“This test shows that in the event of a stock crash, Bitcoin, backed by widespread use of the S-curve, which absorbs more capital, will offer completely safe properties.”
On October 26, Morgan Creek Digital co-founder Anthony Pomplano stated that “Bitcoin is the perfect refuge,” and the market proves it, adding that Bitcoin “can no longer be related” to the stock market.

Not everyone agrees that Bitcoin needs some sort of separation: in May, analyst Scott Melker tweeted that stocks and Bitcoin “are not related now and were not related before.”

Earlier last week, crypto investor Chris Dunn suggested that there was a negative link between stocks and BTC, prompting Wu to reaffirm his stance on bitcoin as a safe alternative to traditional assets:

“It is logical that BTC will continue to correlate in the short term, but no longer. BTC is a safe haven, it’s just that ‘risk’ (which is very new) distorts this fact. ”
However, some analysts have suggested that being overly concerned about the relationship between the BTC and the S&P 500 could be dangerous. Analyst Michael Van de Pope said that when things go wrong as of March this year, “all contexts tend to approach 1,” adding:

Since then, gold, silver and bitcoin have resisted any downward trend and have shown their strength, except in the stock markets. Do not get attached to this relationship. “

Source: CoinTelegraph