The There is a positive correlation between the Bitcoin The record-breaking 2022 high of the US stock market and price is now fading. The Bitcoin This decoupling may be a sign of good news for bulls, as it could mean that the US stock market’s ongoing struggles are becoming less of a headwind for the world’s largest cryptocurrency.
According The 60-day period is shown in a chart by CoinMetrics. Pearson correlation between the BTC price and the closing price of the S&P 500, the most widely followed US equity market benchmark, fell to its lowest level since April 2022 at 0.30 this week
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The In 2016, correlation reached an all-time high at 0.667. September 2022, After rising sharply earlier in the year as crypto and equity prices crashed in unison amid worries about a stronger-than-expected pick up in US inflationary pressures and The resultant tightening response from the US Federal Reserve.
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The fall in the correlation between the two asset classes comes in the wake of crypto’s impressive rally since the start of the year. Bitcoin was last up around 35% on the year, while the S&P 500 is up a far more modest 4.0%.
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Could a Lower Correlation to Stocks Indicate the End of Bear Market?
Bitcoin’s elevated correlation to US equity markets in the latter half of 2022 was a clear feature of the ongoing bear market that, by the lows in NovemberBTC pulled as low as 77% from its 2021 record highs, $69,000.
Prior The 60-day grace period will then apply. Pearson Correlation between Bitcoin and the S&P 500 had only ever been as high as 0.3 on a few occasions, and would frequently fall below zero. The Few years until 2022 Bitcoin’s correlation to US stocks was much weaker were characterized by significant price gains.
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