Among analysts a periodically draw attention to the dependence of the price of bitcoin from the dynamics of the movement of the us stock market. First and foremost, we are talking about correlation with the S&P 500 index.
However, there are experts who doubt a strong relationship between cryptocurrency and stock indicator. This point of view, for example, is a trader Luke Martin.
On Twitter, he published a series of posts in which he analyzed the movement of BTC and the US market. The expert came to the conclusion that the correlation is sometimes really took place.
For example, the so-called “Black Thursday”, March 12, was the day of the fall not only of the stock market, but stock indicators. This is the most striking example of the interdependence of cryptocurrency and S&P 500 index.
However, even this argument cannot be used as a factor indicating the prospects of bitcoin. The correlation is purely nominal.
The fall in mid-March occurred against the background of fear in the camp of investors. They rushed EN masse into cash, so began dumping stocks and digital currency. Fear is always one of the most important factors determining the behavior of players, said Martin.
If you look at the graph presented by the trader, we can see that over the past six years, the correlation between the assets had an insignificant place. There have been periods when the stock market was in a stable condition, and bitcoin at this time showed sharp volatility, both positive and negative.