How Would Stock Market Crash Impact Bitcoin? (BTC vs S&P500 vs Gold)


Bitcoin and S & amp; P 500 Traded Synchronously Again

Bitcoin and S&P 500 traded synchronously again

  • Bitcoin and S&P 500 positively correlated with February.

  • Divergence between BTC and SPX occurs mainly on weekends.

  • In April, the two assets show a close relationship.

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From February 13, between the bitcoin rate and the S index&P500 is positively correlated. In addition, since the collapse in the first half of March, the relationship between the two assets has become even closer..

The charts of Bitcoin and the American index were published on Twitter by the famous trader @CanteringClark, who compares the dynamics of two assets on one-minute timeframes.

As the trader notes, despite the similar price dynamics for most of the day, in the second half of trading, the digital currency kept afloat despite the SP500 decline:

Below we will analyze the behavior of both assets to determine if there is a correlation between them..

Long-term correlation

Bitcoin rates (candlestick chart) and S&The P 500 (blue line) are shown in the chart below, which shows the dynamics of two assets since October last year.

Initially, the price of both assets was traded asynchronously.

Bitcoin and S & amp; P 500 Traded Synchronously Again

If bitcoin, after a sharp rise, has fallen by more than 100% since October 26, then S&P500 during the same time decreased not so dramatically.

That changed on February 13 when both the cryptocurrency and the US stock index began to bearish. 75 days have passed since then, but none of these assets have returned to their previous levels..

The fall accelerated significantly on March 7 in the case of the index and on February 13 in the case of Bitcoin. Over the past 75 days, two assets have shown a positive correlation, and a very close.

April correlation

Shorter-term charts have seen a similar correlation since April, but not without some divergence.

The correlation coefficient is shown at the bottom of the graph. An indicator at level 1 indicates a complete correlation, while an indicator in the zone of negative values ​​indicates that there is no relationship between asset dynamics.

Bitcoin and S & amp; P 500 Traded Synchronously Again

In this case, we see a correlation. In addition, the periods with the lowest correlation occur on weekends when the SP500 is not trading..

Apart from these periods, in general, prices moved almost in unison, with the exception of short periods of time when the coefficient dropped below zero..


So bitcoin and S&The P 500s have been showing a positive correlation over the past 75 days since February 13th. Despite short periods of divergence (mainly on weekends), the two assets almost completely repeat the dynamics of each other.



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