Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Crypto Channel
  2. Will Central Bank Policy Impact Bitcoin?
Crypto Channel
Share

Will Central Bank Policy Impact Bitcoin?

Evan HarpMay 04, 2022
2022-05-04

Cryptocurrencies began as a revolution against traditional finance, seemingly untethered and without correlation to anything else in the market. As they have become more mainstream and widely accepted, they have started behaving increasingly like equities. As such, the central bank’s monetary policy is going to impact them.

Analysts aren’t expecting any abnormal movement, as the market has anticipated a rate hike of 50 basis points, but if Fed Chair Jerome Powell strikes a more hawkish or dovish stance than expected, that could send crypto prices dropping further.

“I would be shocked to see the crypto market drop substantially by the close of the stock market Wednesday. Longer term, there is also strong buyer support for Bitcoin at the $30,000 and $28,000 level. It would have to take something really spooky, a significant change of course to shake people out at those levels,” said GSR crypto trader John Kramer. Bitcoin fell to $37,732 yesterday, 45% off its all-time peak from November 2021.

According to Bloomberg Intelligence senior commodity strategist Mike McGlone, any movement in bitcoin’s performance today is more than likely to be “trader noise.”

“The bottom line is that one of the most rapidly growing assets in recent years are cryptocurrencies so they have the most to lose, despite that Bitcoin has been showing divergent strength,” McGlone said, noting bitcoin’s year-to-date drawdown relative to the Nasdaq.

Even with cryptocurrencies becoming mainstream, they remain the new kids on the blockchain. The recent dip in crypto prices presents a potential bargain opportunity for investors curious about the space. ProShares CEO Michael Sapir said in a recent interview, “Bitcoin seems to have correlated with the movements of stocks. I don’t know if that’s a permanent condition. And there’s been substantial periods in the past where bitcoin has performed uncorrelated with stocks and bonds.” The ProShares Bitcoin Strategy ETF (BITO) launched last October, rocketing to over $1 billion in AUM in just two days.

A spot Bitcoin ETF still seems far away but Sapir notes that “there’s been about a 0.99 correlation with spot bitcoin in the futures since we launched, and the performance since we launched has been close to spot bitcoin itself.”

For more news, information, and strategy, visit the Crypto Channel.

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X