Bitcoin (BTC) Loses Correlation With S&P 500 Stocks: Analyst
Former senior market analyst at eToro and CEO of Quantum Economics noticed major 'decoupling' event...
- Mati Greenspan, former senior market analyst at eToro and CEO of Quantum Economics, has observed a significant "decoupling" event between Bitcoin (BTC) and top stocks.
- The correlation between BTC and the SPX500 index has been declining since early 2023, marking the largest decline since the 2018-2019 bear market peak.
- In the early years of Bitcoin's history, the correlation was mostly negative, but it started growing during the 2020 crisis.
- Bitcoin still maintains a correlation with the Nikkei 225, a Japanese version of the SPX500.
- In June 2023, Bitcoin also lost its correlation with gold, both of which are considered hedge instruments against market volatility.
- The cause of this decoupling is not explicitly mentioned, but Greenspan suggests it may be associated with a bearish recession phase for Bitcoin.
- Another analyst, PlanB, believes the market is currently in an accumulation phase before a new bullish rally expected to occur in 2024-2025.
The sentiment of the article is neutral. It presents the observation of a decoupling event between Bitcoin and stocks without expressing a positive or negative opinion.