RATE Group | Bitcoin’s Correlation With S&P500 At 2-Year High Amid the Coronavirus Crisis
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Bitcoin’s Correlation With S&P500 At 2-Year High Amid the Coronavirus Crisis

22 Mar Bitcoin’s Correlation With S&P500 At 2-Year High Amid the Coronavirus Crisis

Posted at 14:36h in Cryptocurrency News by

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Bitcoin’s (BTC) correlation with the S&P 500 is at a 2-year high. This is a bearish sign for the cryptocurrency market.

Cryptocurrency market research firm, Santiment, pointed out that the recent market downturn resulted in a high correlation between Bitcoin and the traditional financial markets in a March 20 tweet.

According to Santiment, Bitcoin’s correlation with traditional equity cyclically moves from negative to positive values. The coronavirus pandemic, according to the firm, resulted in the growth of this correlation:

“With this pandemic, we are obviously seeing very similar movements in tandem as the coronavirus justifiably has investors in virtually every sector in a similar state of cautiousness.”

High correlation is a bearish sign

Santiment explained in its tweets that historic Bitcoin data shows that when the correlation with the S&P 500 is high, it is typically accompanied by major downturns in the cryptocurrency markets. The firm also notes:

“Any subsequent…

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