Bitcoin’s Price Correlation with 2022 Bear Market Reaches 98%
- Bitcoin (BTC) is currently mirroring the price patterns of its previous bear market in 2022, showing a daily correlation of approximately 80% and a monthly correlation of nearly 98%.
- BTC has experienced a decline of about 36% from its all-time highs, disappointing many investors expecting significant gains.
- November has historically been one of the worst months for BTC price action, ranking in the bottom decile since data collection began in 2015.
- US equity funds have attracted $900 billion in new capital since November last year, indicating strong institutional interest compared to other asset classes.
- Bitcoin ETFs reported inflows of $220 billion during Thanksgiving week, suggesting a potential end to the recent institutional sell-off in crypto markets.
The current market conditions reflect a significant downturn for Bitcoin as it closely follows its past performance during the bear market phase of last year. With substantial inflows into US equities and Bitcoin ETFs, there are indications that investor sentiment may be shifting.
As Bitcoin continues to replicate past bearish trends, it remains uncertain when a significant price recovery will occur, with analysts suggesting it may not happen until Q1 next year.Source
