Bitcoin and S&P 500: a record correlation since 2020 which worries investors
Bitcoin now moves almost at the same pace as Wall Street. According to Glassnode, its correlation with the S&P 500 reaches 0.80, a level rarely observed since 2020. While technology stocks are falling and Asian stock…
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https://cryptoast.fr/bitcoin-sp-500-correlation-record-glassnode/
Bitcoin (BTC) now follows Wall Street very closely. According to Glassnode, the correlation between cryptocurrency and the S&P 500, the index of 500 large American companies, reached 0.80 over the last 30 trading sessions.
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Published on Friday, this indicator measures the extent to which two assets move in the same direction, on a scale ranging from -1 to 1. The closer it gets to 1, the more their movements are synchronized, without necessarily having the same magnitude.
Over the last 30 US sessions, the correlation with the S&P 500 reached 0.80. Since 2020 it has spent most of its time far below that.
Despite the talk of bitcoin's relative strength, macro sets the direction for now. pic.twitter.com/h5eQilv6BA
Such a level remains rare since 2020. For Glassnode, macroeconomic factors are currently dictating the trend of Bitcoin, despite its relative resistance observed in recent weeks.
The price of Bitcoin is moving around $76,000 this Saturday, November 7, down nearly 9% over one month.
Last Thursday, the Nasdaq Composite, dominated by technology stocks, plunged 5.5%, the S&P 500 by 4.4% and Nvidia by 9.3%. Bitcoin also lost more than 5%.
This correction is explained in particular by fears of a slowdown in investments in artificial intelligence, after the American mid-term elections.
On the same day, spot Bitcoin ETFs saw more than $430 million in net outflows, illustrating the caution of institutional investors. Taiwan and South Korea are trying to stabilize their stock markets
The correction has spread to Asia. In Taiwan, the Taiex lost 12.19% over the week. The government authorized its stabilization fund, endowed with around $15 billion, to intervene in the market. Short will also be restricted from November 9.
Machine-translated from French
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- Cryptoast7 Nov, 13:16
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