Analysts at Cathie Wood’s ARK Investment Management are wondering if Bitcoin BTC/USD will lead the move back to risk-on assets given the asset’s recent price action.
Research associate David Puell and analyst Yassine Elmandjra have written that for the third consecutive month, as other asset prices have hit new lows, Bitcoin has been trading between support at its investor cost basis ($18,814) and resistance at its 200-week moving average ($23,460).
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Interestingly, the ARK Innovation ETF ARKK holds a significant stake in crypto-linked stocks, Block Inc. SQ, Coinbase Global Inc COIN and Robinhood Markets Inc HOOD.
Comparisons: The authors also observed that in the current risk-off environment, Bitcoin has fared better than several high-profile large-cap equities. “From their all-time highs, the declines in Meta Platforms Inc META and Netflix Inc NFLX have exceeded that of Bitcoin,” they said.
They also stated that Bitcoin’s volatility has dropped relative to both equities and major currency pairs during this period of macro uncertainty and dollar strength. “For the first time since October 2016, Bitcoin’s 30-day realized volatility is roughly equivalent to that of the British pound and Euro. A few months after October 2016, bitcoin began its 20-fold move up to ~$20,000,” the authors said.
Image and article originally from www.benzinga.com. Read the original article here.