False Safe Haven: Bitcoin Correlation With S&P 500 Hits ATH

Data shows the Bitcoin correlation with S&P 500, and hence the stock market, has now set a new all-time high (ATH). Bitcoin Correlation With S&P 500 Reaches New High As pointed out by an analyst in a CryptoQuant post, the BTC correlation with the stock market is currently at an all-time high, further damaging the “safe haven” narrative. The “Bitcoin correlation with S&P 500” is an indicator that measures how strongly the price of BTC reacts to volatility in S&P 500, as well as the direction of the response. When the indicator has values greater than zero, it means there is a positive correlation between the stock market and the price of the crypto at the moment. “Positive” here means that BTC moves in the same direction as S&P 500. On the other hand, correlation values less than zero imply that BTC reacts to S&P 500’s price changes by moving in the opposite direction. Related Reading | Bitcoin Plunges Below $40 As Russia Has Reportedly Given Its Forces Order To Attack Ukraine Values of the indicator exactly equal to zero naturally mean that there is no correlation between the two assets. Now, here is a chart that shows the trend in the S&P 500 and Bitcoin correlation since the year 2013: The indicator's value over the history of the crypto | Source: CryptoQuant As you can see in the above graph, the correlation between Bitcoin and S&P 500 swung...