Correlation between bitcoin and S&P 500 turns negative for the first time since early 2021

This shows that the market of digital assets has stopped responding to the dynamics of the dollar and stock indices

30.06.2023 - 11:00

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3 min

What’s new? The correlation between bitcoin and the S&P 500 index has turned negative. According to CoinMetrics, it was -0,01 on June 26. This indicates that the market of digital assets has stopped reacting to the dynamics of the dollar and stock indices. The last time the indicator fell to similar levels was in early 2021. In this, an all-time high (ATH) was recorded on May 7, 2022, at 0,76.

The S&P 500 stock index includes a basket of shares of the 500 largest-capitalized public companies traded on the US stock exchanges. The index is compiled by analytics firm, Standard & Poor’s. As of June 30, it stands at 4396,44, having gained 0,45% in 24 hours, according to Investing.com.

What is going on with BTC? Meanwhile, according to analytics platform IntoTheBlock, the first cryptocurrency’s correlation gap with the S&P 500 was also recorded in November last year amid the collapse of the FTX crypto exchange.

In June this year, applications for the launch of spot bitcoin exchange-traded funds (ETFs) in the United States were filed by major investment companies, including BlackRock, Fidelity, Valkyrie, WisdomTree, Invesco, and Bitwise. CoinShares analysts attributed to this the record weekly inflow of funds into crypto funds since July 2022. Amid the positive news, bitcoin rose to $30 000 and is trading at $30 760 on Binance as of June 30, 10:40 UTC, having gained 0,26% per day.

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On May 21, former Goldman Sachs CEO Raoul Pal called for buying BTC “right now,” citing a favorable macroeconomic situation. For his part, Larry Fink, CEO of BlackRock, saidthat bitcoin could become a global market asset in the future. In contrast, Peter Schiff, head of Euro Pacific Capital, expects the BTC rally to end soon

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