According to CNBC’s Fast Money, Bitcoin has been underperforming the S&P 500 since the beginning of June, losing just under 4 percent of its value against the USD. CNBC’s observation, however, turned out to be a significant turning point for BTC, which jumped almost 5 percent after the tweet was posted.
Bitcoin price breaks $8,000
Following a whole month of being stuck in a very tight trading range, Bitcoin has managed to break through the $8,000 mark on June 10th. And while it failed to hold that price point for longer than a few minutes, the brief venture proved to be more important than one might think.
Bitcoin started the day low, going for just over $7,500 in the early trading hours, but jumped from $7,672 to $8,012 in just one hour.
These kinds of dips aren’t uncommon in the crypto market—the top 100 coins by market cap frequently see their prices fall by up 6 or 7 percent daily. However, Bitcoin’s 4 percent dip bears a bit more weight than the usual dip, as it can easily be traced to a single tweet.
Fast Money, a CNBC market analysis show, had posted a graph comparing Bitcoin’s performance in the first two weeks of June to that of the S&P 500. The data showed that BTC saw a huge dip in the first few days of June, which then continued throughout the following week.
According to data from Coinbase, it was down 3.73 percent on June 10th.
Bitcoin is underperforming the S&P 500 this month…wow pic.twitter.com/Ku8W9eVitZ
— CNBC's Fast Money (@CNBCFastMoney) June 10, 2019
The S&P 500 Index, on the other hand, was up 3.51 percent during that time.
CNBC’s Fast Money observation signals it’s time to buy
The comparison was surprisingly well received by the crypto community, with many thanking CNBC for the spike in prices that was inevitably going to happen. It was seen by many as a clear buy signal.
Now comes the pump. Thanks for tweeting this! We know what to expect.
— ₿ack to the ₿ull run (@CryptoMarty) June 11, 2019
Bitcoin just rose 5% right on schedule.
The CNBC twitter intern has to have HEAVY Bitcoin bags 😂😂
— Pomp 🌪 (@APompliano) June 11, 2019
The difference in performance between the world’s largest cryptocurrency and the S&P 500 Index has already started to disappear. Jason Hunter, a JP Morgan strategist, told CNBC that the S&P 500’s June rally could be short-lived. He warned investors to be “hesitant” about the market, as bad news from this month’s G-20 meeting could bring a major correction to stocks.
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