Data from TradingView shows a correlation between Bitcoin and the S&P 500 to be as close as 0.9.Read MoreFeedzy
As the S&P 500 closed out the first quarter down 5.5%, bitcoin (BTC) closely followed, with the world’s largest digital asset tied to the S&P 500 as closely as ever.
Bitcoin closed the quarter down 2%, tightening the correlation with the S&P to nearly 0.9 (1 is perfect correlation, -1 is perfectly inverted).
While bitcoin touched $48,000 earlier in the week, it has since dropped below $45,000 to close out the week.
The correlation between the index and bitcoin appears to be cyclical; bitcoin’s losses will outpace the stock market’s given the 24/7 nature of the asset.
Likewise, its fast rebound will also outpace the S&P.
Traders are concerned about the prolonged nature of the Russia-Ukraine war, and threats from the Kremlin to cut off Europe’s supply of natural gas unless the contracts are denominated in Rubles.
As CoinDesk previously reported, although bitcoin had one of its worst-ever starts to a year, it ended up gaining around 9% throughout March occasionally outperforming US stocks.
However, many layer-1 tokens like Solana, Terra, AVAX and Cardano were able to outperform bitcoin with double-digit gains on mainstream curiosity about the launch of Ethereum 2.0 according to analysts who spoke with CoinDesk.
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
The Bitcoin volume has experienced a severe crash amidst its initial price momentum, falling by…
Follow Mark on X. Well, well, well—if it isn't Jack Mallers dropping truth bombs like…
The user held BTC from when it was worth $0.06 all the way up to…
Bitcoin has experienced a whirlwind of volatility following its recent all-time high of $93,483 set…
Follow Aaron on Nostr or X. In his Take from Wednesday, Shinobi argued that the surge…
Soccer player George Boyd made over 100 Premier League appearances and has now joined crypto…