Stock market x Bitcoin: Has volatility changed the correlation dynamics?
The relationship between the equity and crypto market has been ever-evolving. Nonetheless, people often tend to put the two asset classes on either side of the same equation and draw parallels.
On 20 April, Bitcoin’s correlation to the S&P 500 hit its multi-month high and flashed a value of 79.2%. However, as the week ended, the number dipped down to 72.2%.
Over the past three months, several downtrend phases have been noted on the chart. However, most of them — not all — were initiated during the last few days of the week, rather than during the initial few days or mid-week period. Notably, something similar had panned out this time too.
So, it can be deduced that Bitcoin and the stock market’s movements have been fairly independent of each other during the initial days of most weeks, but have usually aligned by the end of them.