Analytics / Forex and Crypto News
Last week, JP Morgan released a note stating that to rebalance the portfolio, pension funds could sell out shares for $175 billion. This step will be taken to ensure the safety of capital and move it from the stock market to safer bonds.
Such steps are common for pension funds, as they diversify their portfolios at the end of each quarter. However, in March, the sale of shares led to a decrease in their value, which was reflected in the S&P500 index. And as you know, the S&P500 index correlates with Bitcoin. Moreover, its positive correlation with the US benchmark rose above the close of the second quarter.
Therefore, crypto market analysts are inclined to assume that the sale of shares by pension funds in the third quarter will put pressure on the price of Bitcoin.
Under the influence of a decline in the S&P500, Bitcoin may again fall below the $9000 mark. If investors, after selling shares, do not want to buy bonds, since the Fed’s decision to lower interest rates to almost zero led to a decrease in bond yields, the decrease in Bitcoin may be greater. In this case, the price of Bitcoin may drop to the area of $8600.
However, some analysts believe that this sale will not affect the price of Bitcoin. Cryptocurrency analyst Scott Melker considers Bitcoin an uncorrelated asset. He talks about the negative correlation of Bitcoin with the US dollar and suggests focusing on it.
During November, ICO-projects sold 416K ETH. This is the largest figure since the summer, reports Trustnodes.
According to Santiment, in August, ICO startups sold only 100,000 ETH. In September, sales of digital currency increased significantly, reaching 300 thousand ETH. In Nov