Correlation of bitcoin and S&P 500 is considered perfect
Many analysts point to bitcoin’s dependence on the U.S. stock market. Traders use the high correlation between bitcoin and business activity indicators when forming tactics.
CryptoQuant estimates that the correlation between BTC and the S&P 500 has reached its highest monthly level since early 2022. Cryptocurrency and the technology sector are united by their belonging to risky assets. Withdrawals from technology companies provoke the fall of the main cryptocurrency.
Since the beginning of the year, the correlation between bitcoin and the S&P 500 has been considered perfect. It has been positive since 2020, despite minor dips. If the Fed eases policy, bitcoin will be among the beneficiary assets of such a trend change.
Today, bitcoin is trading at $20,400 and the share of profitable addresses on the network has risen to 50%.