Mati Greenspan: Bitcoin Is Still A Risky Asset, But Has Good Prospects In 2020

Mati Greenspan, the founder of Quantum Economics, said that during the period of mass distribution of Covid-19, the interrelation between Bitcoin and traditional assets intensified. This was triggered by the panic that gripped global markets after their sharp collapse in March. In his speech, he immediately noted that many followers of crypto would not like his observations and conclusions regarding the situation in the cryptocurrency market.

Mati Greenspan reported that the correlation of Bitcoin with the S&P 500 reached a historic high. The most favorable is the correlation coefficient between assets at +1, while the current correlation of Bitcoin and S&P 500 is about 0.6. The decrease in the interrelation between the flagship cryptocurrency and the stock exchanges almost repeated the 2011 anti-record, when the correlation between these assets fell to the level of 0.3.

Mati Greenspan noted that despite all the hopes of the crypto community, the correlation of Bitcoin and the S&P 500 is approaching zero, which indicates the absence of a strong relationship between the two assets. He also said that in these conditions, it will be difficult for Bitcoin to get rid of the status of a risky asset that has been assigned to it since the launch. Statements about Bitcoin as the future of financial infrastructure, confirmation of the status of “digital gold” remain unfulfilled hopes of crypto adherents.

Bitcoin may strengthen its position in 2020

Despite criticism, Mati Greenspan still sees a positive trend for the growth and strengthening of Bitcoin in 2020. In particular, he compared the behavior of Bitcoin and oil market in the context of the spread of Coronavirus and the accompanying economic crisis. He noted. that the flagship cryptocurrency has shown itself as one of the best performers in April. Greenspan also praised the recovery in Bitcoin prices after the collapse in March. Against the backdrop of the anti-records that swept the oil market, Bitcoin’s positions look more confident.