Difficulty Estimator
79,679,234,551,296 +0.00%
Fear and Greed Index
73 -1.35%
MVRV Z Score
3.12
Network Value to Transaction Ratio
64.27
Bitcoin Dominance
57.0% -2.41%
Mayer Multiple
1.4 +0.72%
US vs Offshore Trading Volume
7.73%
Circulating Supply
19,799,090.625 +0.00%
Halving Countdown
17.0%
Hashrate vs Price
814.86 EH/s +4.02%
Node Map
20,582
Miner Revenue
$47,613,352.70 +2.69%
Network Difficulty
108.52T +0.00%
Puell Multiple
1.18 +2.76%
Exchange Trading Volume
$157.74B +18.85%
Exchange Trading Volume BTC
$38.32B +9.35%
Exchange Volume BTC Dominance
24.3% -7.96%
Monthly Exchange Volume
$2.37T
Start typing to search through charts, users, and news
Navigate
ESC
Close
↵
Open
⌘
Open in new tab
Bitcoin hits a new ATH of $108,281.78!
MicroStrategy has acquired 15,350 BTC for ~$1.5 billion. View their new purchase on Bitcoin Treasuries.
RIOT has acquired 667 BTC for ~$67.4 million. View their new purchase on Bitcoin Treasuries.
Login
US Equities Correlation Chat
0 messages
US Equities Correlation stats
0.27
$97,756.45
$5,867.08
about 12 hours
Terminal Stats
5
0
The correlation between Bitcoin and the U.S. equity market, particularly the S&P 500, is a compelling area of study for investors. This dynamic relationship sheds light on how Bitcoin behaves in relation to traditional financial markets, offering insights into risk management and diversification strategies for portfolio construction.
Correlation measures how two assets move in relation to one another, with values ranging from -1 to 1. A value of 1 indicates a perfect positive correlation, where two assets move in the same direction, while -1 signifies a perfect inverse relationship, where one asset rises while the other falls. Real-world asset correlations rarely hit these extremes, instead fluctuating within this range.For Bitcoin, its correlation with the S&P 500 highlights its evolving role within the global macroeconomic environment. Over the past five years, Bitcoin and the S&P 500 have displayed one of the strongest correlations among major assets, with a 30-day correlation often exceeding 70%. This suggests a close relationship between Bitcoin and traditional equity markets, particularly during periods of heightened market stress or macroeconomic uncertainty.
The correlation between Bitcoin and the S&P 500 has not always been consistent. In early 2020, just before the COVID-19 pandemic, Bitcoin and equities were negatively correlated. However, as the pandemic unfolded, risk assets, including Bitcoin and equities, became more tightly linked, with their correlation spiking. This shift underscores how global macroeconomic factors, such as central bank policy and economic crises, can drive synchronization across asset classes.In contrast, during Bitcoin’s dramatic bull run in 2019, its correlation with the S&P 500 turned sharply negative. Bitcoin surged from around $3,000 to $12,000 during this period, while equities experienced more modest movements. This decoupling demonstrated Bitcoin’s potential to operate independently of traditional markets, particularly during its signature price pumps driven by its unique supply dynamics and adoption trends.
For investors, Bitcoin’s correlation with equities holds significant implications. During periods of high correlation, Bitcoin behaves more like a risk asset, influenced by macroeconomic factors and broader market sentiment. However, when Bitcoin decouples from equities, its price movements are often driven by its intrinsic fundamentals, such as its fixed supply, adoption cycles, and halving events.Understanding this correlation dynamic allows investors to anticipate shifts in Bitcoin’s behavior. A decline in correlation with equities could signal the start of a major Bitcoin rally, where its unique characteristics overshadow its alignment with broader markets. Conversely, during periods of high correlation, Bitcoin’s price movements are more likely to reflect those of equities, underscoring its status as a high-risk, high-reward asset.
Bitcoin’s correlation with the S&P 500 is a vital metric for understanding its place within the broader financial landscape. While periods of strong correlation highlight Bitcoin’s alignment with traditional risk assets, moments of decoupling underscore its unique position as an alternative store of value and a disruptive financial technology. Monitoring this relationship equips investors with the insights needed to navigate Bitcoin’s dual role as both a speculative asset and a revolutionary financial innovation.
This website collects cookies to deliver better user experience and analytical purposes