- Block Scholes analysts pointed this out
- The correlation dropped to this level for the first time since July 2021
- What this means, read the piece
The 90-day correlation ratio between BTC and the S&P 500 fell to near zero for the first time since July 2021. This was reported by Block Scholes analyst Andrew Melville.
In July 2021, the BTC exchange rate was between two highs. In April 2021 the main cryptocurrency reached a local peak of $63,500. Then there was a summer slump and a rise in November 2021 to $63,500.
Andrew Melville believes the drop in correlation is because both assets (BTC and S&P 500) have recouped last year’s losses related to rising interest rates and the general economic downturn.
The decline in cryptocurrency correlation with tech stocks means an important nuance. Crypto traders should now focus less exclusively on data from traditional markets and metrics. Bitcoin has become less responsive to the macroeconomic climate.
Today, bitcoin is trading sideways. Its price has remained almost unchanged for a day and is $30,776.70 (↓0.78%). The dominance of BTC in the total market capitalization of cryptocurrencies is increasing, which can be interpreted as a sign of market recovery. Bitcoin’s dominance rate is above 50%, the highest since April 2021.
By the beginning of 2023, bitcoin has gained about 85% in value.. Stocks from the S&P 500 index also showed a significant recovery.
While another key market metric points to bitcoin rising, Bitfinex writes.