Bitcoin at record high above $75,000 is good news for Nifty bulls also. Here's why
Beyond the world of cryptocurrency, the surge in Bitcoin prices is also seen as a positive indicator for equity as an asset class as it denotes the risk-on sentiment in the market currently.
«Bitcoin is a proxy for risk taking appetite in the markets. Bitcoin moving up means the risk appetite of investors is rising. Conversely, if it falls then investors prefer safety,» SAMCO Securities said.
An analysis of MSCI India ETF and Bitcoin prices since 2020 shows that the rally as well as correction in Bitcoin coincides with the price movement in MSCI India ETF.
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The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
View Details»«Emerging markets like India too are a proxy for risk for foreign investors. MSCI India ETF is down more than 8% from the recent highs while Bitcoin has hit a new all-time high,» the brokerage said.
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