IMF officials argue that the price of Bitcoin and the performance of Asian stock markets are interrelated. Many countries in Asia continue to adopt cryptocurrencies despite regulatory concerns. The increasing risks of Bitcoin use are creating a sensitive environment for crypto in Asia.
Correlation rises between Bitcoin and Asian stock markets
Chinese journalist Colin Wu reported that International Monetary Fund (IMF) officials have observed that the correlation between the performance of Asian stock markets and cryptocurrencies such as Bitcoin has increased significantly. Wu says Asian countries like India, Vietnam and Thailand are adopting Bitcoin and cryptocurrencies. Despite regulatory concerns, there has been a surge in individual and institutional adoption of Bitcoin.
IMF: The returns and volatility correlations between Bitcoin and Asian equity markets increased significantly since 2020. For example, the return correlations of Bitcoin and Indian stock markets have increased by 10-fold over the pandemic. https://t.co/wyQpAFErv5 pic.twitter.com/UEHckFpTAS
— Wu Blockchain (@WuBlockchain) August 23, 2022
IMF officials also approve of Bitcoin’s growing correlation with Asian stock markets
Although governments and law enforcement in Asian countries are aware of and sensitive to the increased risks posed by Bitcoin, Bitcoin’s association with Asian stocks is real. In addition, IMF officials admit the same thing.
The IMF says the rapid adoption of Bitcoin in Asian countries raises financial stability concerns. Before the Covid-19 pandemic, cryptocurrencies acted independently of the financial system. Also, Bitcoin was showing no signs of correlation with Asian stock markets. However, this scenario has changed after the pandemic.
Asian investors have flocked to crypto during the pandemic. Thus, it increased the correlation between the performance of the region’s stock markets and BTC. The correlation of returns and volatility between Bitcoin and Asian stock markets has increased significantly since 2020.
IMF officials identified three key drivers of Bitcoin’s Asian link:
- Increasing acceptance of crypto-related platforms,
- Investment instruments in the stock market
- Acceptance by OTC and individual and institutional investors with higher crypto acceptance.
Analysts offer a bullish outlook for BTC, while the IMF also advocates a strong case for Asian exchanges fueling Bitcoin’s next move.
3 big signals on Bitcoin chart, “price preparing for $60,000”
The Twitter analyst, nicknamed El Crypto Prof, is quite optimistic about BTC. The analyst identified three bullish signals on the Bitcoin price chart, similar to 2018-19. The MACD, a trend-following momentum indicator, reveals the classic divergence.
The analyst spotted an ABC correction on the BTC price chart. An ABC retracement is a measured downtrend graph pattern nestled within a measured upward move. This is particularly consistent with Bitcoin’s installation in 2018-19. Therefore, the analyst expects the Bitcoin price to rise to $60,000. As you follow on Kriptokoin.com, short-term forecasts showed $22,725 to be critical.
16270
