How S&P 500 Correlation with Bitcoin Affects the BTC Market?

Ever since the traditional markets took a nosedive due to the global economic effect of the Coronavirus, Bitcoin traders have noticed an uncanny correlation between BTC and S&P 500.

Historical Correlation between Bitcoin and S&P 500

Recently, Bitcoin hit a new all-time high correlation with the S&P 500, a stock market index that tracks the performance of large US companies. Based on the below chart from Coin Metrics, the 90-day Pearson correlation coefficient for Bitcoin and the S&P 500 hit an all-time high of roughly 0.5 since March.


  • 1 -> BTC and S&P move identically
  • 0 -> BTC and S&P move completely independent from each other
  • -1 -> BTC and S&P move in opposite directions

1. After Bitcoin bottomed out at $3480 in December 2018, its correlation to the S&P dwindled from 0.4 to -0.3 in the next two months, as Bitcoin into its 2019 rally.

2. After Bitcoin hit the bottom of $6,600 in December 2019, its correlation to the S&P started trending negative to -0.4 as BTC was commencing its 2020 pump.

What will happen in the Bitcoin market?

Indicated by the above data history of correlation between Bitcoin and S&P 500, Justin Kwok, the Analyst Director from Bexplus, predicts that Bitcoin’s next decoupling from the S&P 500 index may be a preliminary sign of market recovery and bullishness. There might be a retracement in the near term. The 14-day relative strength index (RSI) is reporting neutral conditions. As a result, Bitcoin may continue the slight consolidation before a potential rally.

Profit on the Bitcoin Recent Pullback in Bexplus

Bexplus is a crypto trading platform focused on 100x crypto futures. Bexplus was established in late 2017 and registered in Saint Vincent and the Grenadines. Bexplus has offices in Singapore, Japan, the US and Brazil and is constantly expanding worldwide.

Bexplus provides 100x leverage margin trading on BTC, ETH, LTC, EOS and XRP. Traders are allowed to bet on market rising and falling. For new users, Bexplus is giving 100% deposit bonus which can help traders increase the margin and the opportunity to get bigger gains.

Join Bexplus now to claim up to 10 BTC bonus and profit from the coming pullback in the Bitcoin market.

Carolyn Coley is a blockchain reporter. She joined Smartereum after graduating from UC Berkeley in 2018.


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