Bitcoin – Could Follow Risk Assets Higher Into Late Summer
Following its strong sell-off in 2018, Bitcoin partially recovered, mostly following risk assets higher during 2019 and into early 2020. Similarly, it suffered during their drastic March sell-off and has since also seen an equally strong rebound. Going forward, we believe its dynamics continue to be correlated to risk assets and we hence expect it to resume higher, probably into mid/late Summer in the first instance. Over the last couple of years, Bitcoin has also been well correlated to most currencies vs the US Dollar (e.g. EUR and AUD) and we believe it could also follow these higher over the next few months, Jean-Francois Owczarczak, Director, FinGraphs.com.