Data shows that the relationship between Bitcoin and S&P 500 has recently decreased to scratch, a sign that BTC is no longer related to the stock market.
Bitcoin’s association with S&P 500 has recently seen the recent drowning
In new mail In X, the InTOTHEBLOCK market intelligence platform discussed the direction in the relationship between Bitcoin and S&P 500. The link here refers to an indicator that tracks how to link the prices of any of the assets given.
When the value of this scale is positive, this means that the price of one of the assets interacts with the movements in the other by traveling in the same direction. The closer to the index to 1, the stronger this relationship.
On the other hand, the scale under the zero mark means that although there is some link between the assets in this case, it is negative. This indicates that the plans are moving in the opposite direction to each other. For this region, the extreme point is -1, and it corresponds to the harshest relationship.
Now, here is the graph of the relationship that the analysis company shares, which shows the trend in the value of the scale for Bitcoin and S&P 500 in the past few months:
As shown in the graph above, the relationship between Bitcoin and S&P 500 increased near the 1st mark during January, which means that the two prices were showing a strong positive relationship.
Since its peak at the beginning of this month, the index has noticed a sharp declining path, and its value today has completely decreased to scratch. Such value means that there is absolutely no connection between assets. In statistics, the variables are said to be independent in this scenario.
The link can be a useful indication of his monitor when the investor wants to diversify his property. Assets that have a close investment relationship may not deserve at the same time, but assets that have low value of the scale can make smart diversification options. As is currently the case, the S&P 500 can provide a different thing for Bitcoin investors and vice versa.
“It was the last time we saw such a low link on the fifth of November 2024, before Bitcoin exceeded the 100,000 mark,” IntothBlock notes. With BTC -free from the stock market again, it can show the cryptocurrency a big step this time as well. However, it remains to see only for how long the currency can move away from the effect of traditional assets.
BTC price
Bitcoin has continued its last trend for unification during the past few days, as it is still being held around the level of $ 96,000.
