Bitcoin Finally Independent? BTC-S&P 500 Correlation Hits Zero
Data shows that the correlation between Bitcoin and the S&P 500 has recently dropped to zero, indicating that BTC is no longer attached to the stock market.
Bitcoin’s correlation with the S&P 500 index recently witnessed a game
In the new postal On X, market intelligence platform Intotheblock discusses the correlation trend between Bitcoin and the S&P 500.Relevance“Here is an indicator that tracks how the prices of any two given assets are tied together.
When the value of the indicator is positive, this means that the price of one of the assets is reacting to the motion of the other by traveling in the same direction. The closer the indicator at close range is to 1, the stronger this relationship is.
On the other hand, the indicator is under the zero mark means that although there are some correlations between assets in this case, it is a negative number. This shows that the charts are opposite to each other. For this area, the extreme point is -1, which corresponds to the closest relationship.
Now here is a chart that analyses companies share relevance that shows the trends in the metric’s Bitcoin value and S&P 500 metrics over the past few months:
As shown in the chart above, the correlation between Bitcoin and the S&P 500 was close to 1 in January, which means that the prices of the two showed a strong positive relationship.
However, since reaching its peak earlier this month, the indicator has observed a sharp downward trajectory and its value has dropped completely to zero today. Such a value means there is no correlation between assets. In statistics, in this case, the variables are considered independent.
Relevance can be a useful indicator to note when investors want to diversify their holdings. Assets with close relationships may not be worth investing at the same time, but assets with lower standard value can be provided for intelligent diversified options. Currently, the S&P 500 can offer something different from Bitcoin investors and vice versa.
“The last time we saw such a low correlation was on November 5, 2024, just before Bitcoin exceeded the 100k mark,” Intotheblock noted. “Don’t be free from BTC,” said BTC. stock market Once again, cryptocurrencies may also show big moves. However, only coins to be observed can stay away from the influence of traditional assets.
BTC price
Bitcoin continues its recent trend merge In the past few days, due to its price still around the $96,000 level.
