Bitcoin’s Correlation with S&P 500 Remains a Concern
- The Bitcoin-S&P correlation has turned negative over a recent short-term window.
- Despite negative correlation, Bitcoin continues to underperform the S&P, as indicated by the declining BTC/S&P price ratio.
- Market behavior suggests Bitcoin is still seen as a higher-beta risk asset rather than a decoupled entity.
Recent data shows that while Bitcoin’s short-term correlation with the S&P has weakened, it does not imply independence from broader market pressures. The BTC/S&P price ratio highlights Bitcoin’s continued relative weakness against equities.
The key takeaway is that despite changes in statistical measures like correlation, Bitcoin remains sensitive to risk-off market conditions and continues to underperform compared to the S&P index. (Source)
