Testing the S&P 500’s Close Relationship with Bitcoin – Here are the results.


Bitcoin is often described as an alternative to gold. However, the historical price action of BTC may suggest a different scenario. Over the years, King Coin has been more closely associated with stocks or the stock sector. Now the question is – will this relationship last in the future given the current bloodshed?

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Sentiment for BTC was at a bottom as of this writing, indicating the degree of ‘darkness’ surrounding BTC and cryptocurrencies in general is the most negative since “BlackThursday” in March 2020. BTC’s weighted sentiment has arrived. The lowest point as you can see in the graph below.

Source: Santiment

In fact, the Bitcoin market is now down for eight straight weeks, making it the longest running red weekly candle in history. However, there may be opportunities to respond to this situation. It’s basically just testing the aforementioned relationship.

In particular, on May 23rd, BTC fell about 4%. But the stock counterparty (S&P500) had a good day at the office.

Screen Shot 2022 05 24 at 6.14.34 PM

Source: Santiment

Santiment, an analytics platform decided,

“These two have fluctuated taut throughout 2022, and this separation is BTC $30,000 resistance. If the stock But if it continues to rise, good things will happen to cryptocurrencies.”

Previous data shows that Bitcoin continues to be linked to the US stock market. The relationship between Nasdaq and cryptocurrencies reached It hit an all-time high two weeks ago. Interestingly, Arcane Research’s weekly report showed that the BTC-Nasdaq correlation increased to over 0.8 new ATH.

Consider the chart below which shows the trend of the Nasdaq, S&P 500, DXY and Gold and Bitcoin 30-day correlations over the past few years.

Bitcoin has mirrored the stock market throughout the year, with correlations soaring in recent months. Bitcoin’s growing institutionalization may be behind its growing correlation with the stock market.

Additionally, the correlation between Bitcoin and the S&P 500 has soared to unprecedented levels as US bond sales spread as a risky asset.

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