Bitcoin’s growing correlation with U.S. stocks could push its price higher, according to a suggestive analysis.Unigestion analysts wrote in a note that investors hold $ 2.3 trillion in cash and cash-based securities. For example, US money market funds attracted an inflow of $ 1.1 trillion during the coronavirus pandemic. In the meantime, bank deposits have risen to $ 1.2 trillion since the February stock crash.The Swiss investment management company has followed hedge fund strategies and recognized that they find risky investments attractive in their lower positions.
Bitcoin could benefit from the reopening of the economy
Unigestion’s assessment comes after Bitcoin and the Wall Street index closed higher amid the cautious reopening of economies around the world. While the cryptocurrency rose 1.58 percent, the US benchmark index S&P 500 climbed 0.9 percent.Analysts are finding that easing lockdown policies could get the economy going again – and that could lead to higher, if not the best, corporate earnings in the second quarter.Supported by the accommodative policies of central banks, US firms have room to create employment long after they have seen an astonishing rise in unemployment.