We should note that there are enough reasons for Bitcoin to rise and separate it from traditional assets right now. As we learned yesterday, most BTC buyers in the $60K area have already managed to sell the coins when they collapsed to $38K and $35K. Accordingly, the number of sellers of the cryptocurrency that are pushing its exchange rate has decreased, making the obstacles to further price increases less as well. Read more about the situation in a separate article.


Bitcoin daily rate chart

What is happening to Bitcoin?

“Separation” of Bitcoin from traditional markets has fuelled the sentiment of those who have often referred to the cryptocurrency as a “safe haven” for crisis investments. It does make sense now: citizens’ bitcoins, for example, are hard to confiscate even in the event of serious economic sanctions. Data from analytics platform CoinMetrics suggests that this trend could continue. If we compare the S&P500 and Bitcoin, their correlation peaked on February 22, and then there was a sharp collapse in the index during the week.

Correlation between BTC and S&P500

As a reminder, correlation is measured between -1 and 1, with a high negative figure indicating a very low correlation between the two assets. A high positive figure indicates the opposite. Last Tuesday, the correlation between the two assets was 0.546, the highest ever. That figure has now fallen to 0.461 - or about 15 per cent.

Bitcoin’s positive price trend could serve as a good boost to the price of the main cryptocurrency. However, it’s not that simple: the adoption of digital assets can be significantly accelerated by the efforts of governments. According to Cointelegraph’s sources, this view has been outlined in the Cryptocurrency Study from the Australian Department of Home Affairs. Here is one of the quotes from the paper.

There is a need for regulatory settings that provide greater clarity and certainty about how the cryptocurrency market can work in Australia.

Bitcoin price on a 1-day chart

Experts recommend exploring four key areas that can “help ensure the safe adoption of cryptocurrencies in the country”. These are minimum cybersecurity standards, crypto awareness through specialist training, a ‘follow the leader’ approach and market transparency.

With the main aim of reducing cybersecurity threats aimed at cryptocurrencies, mandatory minimum cybersecurity standards are recommended for cryptocurrency exchanges and Australian cryptocurrency firms. In doing so, Jonathon Miller, managing director of cryptocurrency exchange Kraken Australia, believes that “minimum security standards and increased resources to combat sophisticated cybercrime will go a long way towards protecting investors.”

In addition, the recommendation suggests a greater focus on raising public awareness through educating professionals about crypto and related cybercrime. This is the “follow the leader” approach in which Australia explores and implements international best practice in the cryptosphere.

Highlighting the inherent pseudo-anonymity of cryptocurrencies, analysts are calling for greater transparency in crypto exchanges and blockchain companies. Here’s their cue.

Educational programs with accurate, consistent messaging will allow investors to better understand both investment and cybersecurity risks, while helping to demystify cryptocurrencies for all Australians.

Cryptotrader

In addition to recommendations, cybersecurity experts have highlighted a number of opportunities that accompany the adoption of cryptocurrencies. The study reveals the huge potential of blockchain for the tokenisation of financial assets, including loans, carbon credits and real estate.


We believe the current situation in the cryptocurrency market should attract the attention of investors who have recently become disillusioned with the behaviour of Bitcoin and other coins. BTC has now once again been reminded of its ability to recover in value and grow even in the most adverse global situations. So that might be enough to connect with crypto for a lot more investors who want to make money in such a challenging environment.