Bitcoin Now In Tune With Asian Equities: IMF Officials
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The blog post detailed: “While the returns and volatility correlations between bitcoin and Asian equity markets were low before the pandemic, these have increased significantly since 2020.” The authors added: “Crypto trading, however, soared as millions stayed home and received government aid, while low interest rates and easy financing conditions also played a role.”
The economic and financial experts further detailed:
“As Asian investors piled into crypto, the correlation between the performance of the region’s equity markets and crypto assets such as bitcoin and ethereum has increased.”
Citing an example, the IMF officials explained that “the return correlations of bitcoin and Indian stock markets have increased by 10-fold over the pandemic, suggesting limited risk diversification benefits of crypto.” They added that “the volatility correlations have increased by 3-fold.”
Finally, the regulatory officials detailed that “the rise in crypto-equity correlations in Asia has been accompanied by a sharp rise in crypto-equity volatility spillovers in some Asian countries,” adding:
“This indicates a growing interconnectedness between the two asset classes that permits the transmission of shocks that can impact financial markets.”
Key Bitcoin Levels to Watch — August 23
After falling from the $25K local peak last week, Bitcoin appears to be holding on neatly above the $21K support. However, the benchmark cryptocurrency struggles with scaling the $21.7K pivot hurdle, restricting it within a choppy pattern over the past few days.
A persistent sideways pattern over the coming days could breach the $21K support, triggering a bearish resumption towards the sub-$20K area. As such, BTC bulls need to facilitate a breakout above the pivot line and seek support from the 100 EMA at $22.7K.
Meanwhile, my resistance levels are at $21,700, $22,700, and $23,000, and my key support levels are at $21,000, $20,000, and $19,000.
Total Market Capitalization: $1.03 trillion
Bitcoin Market Capitalization: $410.4 billion
Bitcoin Dominance: 39.8%
Market Rank: #1
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