Data Shows Bitcoin Still Highly Correlated With Stock Market

    Data exhibits the Bitcoin correlation with the inventory market has been excessive in current months because the crypto has been carefully following S&P 500 and NASDAQ.

    Bitcoin Has Continued To Mimic Movements Of The US Stock Market In 2022

    As per the newest weekly report from Arcane Research, whereas BTC has been extra risky than the inventory market, the crypto’s actions have nonetheless been fairly near the latter.

    In the yr 2022 to date, each the inventory market and Bitcoin have discovered it onerous. However, year-to-date, BTC is down 51% whereas S&P is 14% and NASDAQ 22% into the crimson, a lot lower than BTC’s losses.

    Here is a chart that exhibits how these belongings have fared towards one another, and gold, within the first seven months of this yr:

    Bitcoin Vs Stock Market

    Looks like Gold has been the strongest out of those belongings through the interval | Source: Arcane Research's The Weekly Update - Week 30, 2022

    As you possibly can see within the above graph, Bitcoin’s actions through the yr to date have been all similar to these of S&P 500 and NASDAQ.

    Though, it’s additionally obvious from the chart that lots of BTC’s worth strikes have been a lot greater in scale than these of the inventory market belongings.

    From this, it may be concluded that the correlation between the crypto and the inventory markets has been fairly vital this yr.

    The foremost purpose behind the extremely correlated markets is the elevated presence of institutional traders in Bitcoin.

    During instances of macro uncertainties, such traders goal to show down their threat and thus pull out of markets like BTC. The ever-increasing inflation has been one of many current occasions behind the crypto observing decline with the inventory market.

    The report notes that the rising significance of financial and financial coverage has additionally strengthened the correlation between not solely BTC and the inventory market, but in addition most different monetary belongings.

    Interestingly, Gold has weathered the yr one of the best out of the belongings in query, seeing solely a 4% drawdown over these first seven months.

    BTC Price

    At the time of writing, Bitcoin’s price floats round $23.1k, down 3% within the final seven days. Over the previous month, the crypto has gained 14% in worth.

    The under chart exhibits the development within the worth of the coin over the past 5 days.

    Bitcoin Price Chart

    The worth of the crypto appears to have been transferring sideways throughout the previous few days | Source: BTCUSD on TradingView

    In current days, Bitcoin hasn’t proven a lot worth motion because the crypto has principally been consolidating sideways across the $23k degree.

    Featured picture from Quantitatives on, charts from, Arcane Research

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