Bitcoin pulled back rather sharply today, but the rally is far from over
There are some out there wondering if they should have sold that $13,900 touch.
I will tell you flat out right now, nope.
This is the very early stages of the rally and the sell off today has nothing to do with bitcoin.
It doesn't even have to do with bitcoin being up some 25% in the month of October.
Nope, it has to do with Wall Street, and Congress, and the Elections and that's it.
The stock market finally figured out it wasn't going to be getting any stimulus before the election, and perhaps not immediately following it either.
Something that ironically had been apparent for weeks now.
Once Wall Street figuring that out, it was SELL SELL SELL!
Check it out:
The DOW is down over 800 points and looking lower, which isn't good for bitcoin.
Why does this impact Bitcoin?
Bitcoin has long been touted as an uncorrelated asset, and while that is mostly true, it's not always true.
Especially over the last 8 months.
Bitcoin has mostly traded along with risky assets over the last 8 months, pretty much ever since the global pandemic began.
When they dip, bitcoin dips.
Adding to this is the fact that bitcoin is becoming more mainstream and more institutionalized.
As bitcoin becomes more institutionalized, the firms that are trading it are also the firms that are trading equities.
Therefore, when those algos hit the sell button on stocks they hit the sell button on bitcoin as well.
It's all interconnected currently.
However, that doesn't mean bitcoin is no longer a safe haven because even hold is selling off right now as well.
Check it out:
While not down to the same extent as the DOW, it's still taking it on the chin, down close to 2% on the day.
Just because bitcoin is pulling back today doesn't mean the rally is over.
Bitcoin may get caught up in the risk-off selling going on globally for a short period of time before it resumes the bullish momentum.
I suspect most of that selling will be over post election.
Either way though, I'm still saying there is a good chance bitcoin goes for $20k by the end of this year.
Stay informed my friends.
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