{"id":428128,"date":"2020-06-22T19:30:59","date_gmt":"2020-06-22T19:30:59","guid":{"rendered":"https:\/\/uniquehot.com\/?p=428128"},"modified":"2020-06-22T17:43:23","modified_gmt":"2020-06-22T17:43:23","slug":"bitcoin-correlation-sp-500","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/bitcoin-correlation-sp-500\/","title":{"rendered":"Bitcoin Correlation With S&P 500 Nears All-Time High, How Could This Impact Crypto?"},"content":{"rendered":"

The correlation between Bitcoin and the S&P 500 has proven to be dangerous<\/a> for the first-ever cryptocurrency. It even helped to drag down the asset during the Black Thursday collapse.<\/p>\n

The crypto asset’s new bull market on the horizon. Yet the correlation with the stock market is once again nearing all-time high levels and at risk of another crash. How could this impact Bitcoin in the days and weeks ahead if the stock market does collapse?<\/p>\n

Black Thursday Kicks Off Catastrophic Stock Market Crypto Correlation<\/h2>\n
As the new year first rolled around, the stock market was on fire, and cryptocurrencies had just begun to heat up.<\/p>\n
The S&P 500 and other major indices set new records for all-time high valuations. At the same time, Bitcoin had finally rebounded back above $10,000 and appeared to be holding.<\/p>\n
Related Reading | Strong Correlation Between Bitcoin and Stock Market May Finally Be Over\u00a0<\/a><\/strong><\/em><\/p>\n
Then the pandemic hit full force, causing markets to collapse in a day now referred to as Black Thursday.<\/p>\n
The stock market suffered a historic collapse, while Bitcoin tanked by over 50%. Other crypto assets bounced off nearly zero for a moment in a flash crash.<\/p>\n
No assets were safe from the devastation, not even precious metals<\/a>.<\/p>\n

FUD May Drag Down the S&P 500 and Bitcoin With It<\/h2>\n
The uncertainty following the world learning of the outbreak, until shortly following the crash, kicked off an uncanny correlation with crypto. The correlation has proven mostly negative for the first-ever cryptocurrency<\/a>.<\/p>\n
When the correlation began to fade, Bitcoin deviated and rallied harder. Eventually, the S&P 500 caught up with the crypto asset, however.<\/p>\n
Now as fear, uncertainty, and doubt begin to take hold of markets once again, the correlation has returned in a big way.<\/p>\n
\n
Bitcoin & stock correlation in 2020. <\/p>\n
We have (sadly) "re-coupled" as of 10 June. Correlations at all time highs.<\/p>\n
Notice the trend?<\/p>\n
High levels of fear and uncertainty (eg. VIX) = high levels of correlation. pic.twitter.com\/rKPjXpdz73<\/a><\/p>\n
— Charles Edwards (@caprioleio) June 21, 2020<\/a><\/p><\/blockquote>\n