Information exhibits the Bitcoin correlation with S&P 500, and therefore the inventory market, has now set a brand new all-time excessive (ATH).
Bitcoin Correlation With S&P 500 Reaches New Excessive
As identified by an analyst in a CryptoQuant post, the BTC correlation with the inventory market is at present at an all-time excessive, additional damaging the “protected haven” narrative.
The “Bitcoin correlation with S&P 500” is an indicator that measures how strongly the worth of BTC reacts to volatility in S&P 500, in addition to the route of the response.
When the indicator has values better than zero, it means there’s a optimistic correlation between the inventory market and the worth of the crypto in the mean time. “Constructive” right here signifies that BTC strikes in the identical route as S&P 500.
Then again, correlation values lower than zero suggest that BTC reacts to S&P 500’s value adjustments by shifting in the wrong way.
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Values of the indicator precisely equal to zero naturally imply that there isn’t a correlation between the 2 belongings. Now, here’s a chart that exhibits the pattern within the S&P 500 and Bitcoin correlation for the reason that yr 2013:
The indicator's worth over the historical past of the crypto | Supply: CryptoQuant
As you’ll be able to see within the above graph, the correlation between Bitcoin and S&P 500 swung between optimistic and unfavorable whereas remaining low for probably the most a part of BTC’s historical past.
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Nonetheless, since late 2019-early 2020, the 2 belongings have turn into strongly, positively correlated. Throughout 2020, the metric had a crash because of the COVID unload, however the indicator sharply rose throughout the 2nd half of 2021 and 2022 up to now.
The correlation between the Bitcoin and the inventory market has now set a brand new all-time excessive (ATH) of +0.5468 this month.
Such excessive correlation between the belongings has additional put a dent on the narrative of “digital gold” because the crypto is not the protected haven it as soon as was.
BTC Value
On the time of writing, Bitcoin’s price floats round $39k, down 12% within the final seven days. Over the previous month, the crypto has gained 10% in worth.
The under chart exhibits the pattern within the value of BTC during the last 5 days.
BTC's value appears to made some restoration during the last couple of days | Supply: BTCUSD on TradingView
Just a few days again, the worth of Bitcoin plunged down, touching as little as $36.4k. Since then, the worth of the coin has proven some restoration, breaking above the $39k degree once more at the moment. In the meanwhile, it’s unclear whether or not this contemporary uptrend will final.
Featured picture from Unsplash.com, charts from TradingView.com, CryptoQuant.com