Why the S&P 500 is more important for bitcoin than COVIND-19

One of the consequences of countries being unprepared for the COVID-19 pandemic was the economic crisis. In March, financial markets experienced the largest collapse. The bitcoin exchange rate fell by almost half in two days, to a low of $3800. on March 23, the quotes of the American s&P 500 index fell by more than 30%, to 2230 points. The German DAX was down 40% to 8,411 points. Falling demand for oil in the conditions of restrictions imposed due to a coronavirus infection, led to the fact that on April 21, trading in WTI futures closed at minus $37.

Alexey Antonov, founder and portfolio Manager of the Algalon Capital investment Fund, explained that bitcoin and other cryptocurrencies depend on the overall state of the American economy. If a new outbreak occurs, first of all, you should pay attention to the reaction of the main markets (for example, the S&P 500). The expert is sure that the cryptocurrency exchange rate primarily depends on this index, and not on the pandemic or riots.

“If you are faced with the question of what to buy: bitcoin or altcoins, then it is not worth buying anything. Any purchase is made as part of the overall strategy of investing in cryptocurrencies, on a clear part of your portfolio. With this approach, you will not have any questions about what to buy, ” the expert explained.