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29 September 2021
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John Bollinger Reveals How Bitcoin Has Been Affected by COVID-19

The coronavirus pandemic has turned Bitcoin into another ‘risk-on, risk-off vehicle’

John Bollinger, the veteran trader who created the Bollinger Bands volatility indicator, claims that Bitcoin is now acting like just another risk-on, risk-off vehicle.

The recent price performance of the leading cryptocurrency shows that all correlations go to one during ‘a real crisis,’ according to Bollinger.

Seeing the writing on the wall

Despite more than four decades of trading experience, Bollinger confessed the fact that Bitcoin was failing to act a hedge for investors during the coronavirus-driven pandemic had caught him by surprise.

The legendary trader apparently saw that trouble was brewing in the crypto market. Two days after his tweet, it became more than evident that Bitcoin was clearly not immune to the deadly virus when its price flash-crashed 48 percent on March 12.

High expectations

As of now, Bitcoin continues to be highly correlated to the U.S. stock market. However, unlike the S&P 500, the leading cryptocurrency is finally in the green this year, currently trading at $7,222. As reported by U.Today, equities took a much harder hammering than Bitcoin in Q1.

However, investors might be tempted to leave Bitcoin in the lurch if it doesn’t rally this year.

Trading vet Peter Brandt recently opined that BTC didn’t have much time left to prove itself during this crisis. Meanwhile, Mike Novogratz, the CEO of Galaxy Digital, wouldn’t rule out abandoning BTC if it didn’t reach a new all-time high by the end of the year.

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