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The correlation between Bitcoin and the stock market falls

La correlation between Bitcoin and the stock market it had been getting tighter for the past few weeks, but it turned suddenly deteriorated in the last few days. And after the last price action by BTC, according to some traders, the correlation could finally be even over, with BTC able to free itself from the chains of the S&P 500, one of the best-known indexes for monitoring the evolution of the stock market lists. stars and stripes.

Is the correlation between Bitcoin and S&P 500 over thanks to halving?

Il Bitcoin price rose well above $ 10.000 in February, but the massive stock market crash also spilled cryptocurrency, resulting in a sharp negative trend in the values ​​of all the major digital currencies.

In short, with the turmoil that has swept through stocks, oil, gold and more, investors of crypto they began to take an interest in traditional markets, and the more cryptocurrency analysts looked closely at these assets and their evolution, the more the correlation between Bitcoin and the S&P 500 became abundantly clear.

Ma this correlation has waned as the days go by and it may finally have come to an end.

As of the end of April, for example, Bitcoin gained further momentum thanks to thehalving, the event that halved the reward that the network recognizes towards its miners. The event helped BTC support its bullish strength in the following month. Whether or not this is the cause, one thing is certain: Bitcoin surpassed the S&P 500 and the rest of the stock market, and he did it with a rather convincing momentum.

Beware of new stock market crashes

But things are not that simple. The closing of the week by US tech stocks has in fact contributed to forming a bearish pattern that could open the door to a new decline in the stock market. If another collapse such as the one already experienced a few months ago occurs, then it is possible that it may drag Bitcoin down once again, and cause the resumption of the correlation that today seems to be partially archived.

Currently Bitcoin is struggling to break the key $ 10.000 resistance, and some speculate that miners below this threshold may not have great convenience in "extracting" new blocks. However, it is very early to say for sure if the stock market will experience another drop and if Bitcoin could be involved in all of this.

The economy is set to reopen, which should be a positive sign that economic growth may soon return to the markets. However, markets often act irrationally, and any positive outlook could lead to profit.

It is therefore likely that all eyes will be on Bitcoin in the coming days, given that the cryptocurrency halving is now behind us, and a more encouraging increase is expected. However, given the correlation with the stock market, cryptocurrency investors are likely to observe that market just as closely ...

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Roberto Rais

A great cryptocurrency expert and a long time collaborator. He actively follows several specialized Blogs in the cryptocurrency sector as Editors

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