BTC and S&P 500 correlation hit a nine-year high, and only large miners will survive halving
BTC and S&P 500 correlation hit a nine-year high
Bitcoin price and the S&P 500 index have been changing most correlated for 9 years, said eToro analyst Mati Greenspan.
The correlation of the prices of the two assets reached 0.6, whereas before it did not exceed 0.3 — with a value of 1, the charts move completely identically. The analyst explained this by the coronavirus pandemic.
“Bitcoin is still considered a “risk asset” and hasn’t achieved the safe haven status that gold has taken thousands of years to build up,” Greenspan summed up.
However, he added that the profitability of BTC is still higher than the stock market: since the beginning of the year, BTC added 7% in price, while at the same time, the price of oil collapsed to the levels of the 2000s.
Opinion: only large miners will survive halving
Representatives of the mining industry believe that only large and effective miners will remain after the halving.
F2Pool co-founder Wang Chun said that due to a decrease in rewards from 12.5 BTC to 6.25 BTC, unprofitable operators could be absorbed by larger players. A similar position was expressed by Alejandro de la Torre, Poolin Vice President. In his opinion, miners using old equipment will have to disconnect after halving.
The head of New Mine, Ibrahim Alkurd, noted that one should not hope for a rise in the price of bitcoin after halving.
“Miners hoping that the BTC price will jump up after halving the block reward, making their operations profitable, are in trouble,” he said.
Wang Chun added that after halving, those farms will stay that are capable of mining bitcoin at a cost of $3,500.