Rolling 30-day correlation between bitcoin and the S&P500 hit all time highs this week
March 22, 2020, 11:32AM EDT · 1 min read
- Rolling 30-day correlation between daily returns on bitcoin and the S&P500 hit all time highs this past week
- Recent Bitcoin correlation to S&P500 tend to peak amidst sharp pullbacks in the price of bitcoin
- Bitcoin is up nearly 20% since last Sunday vs the S&P500 which finished the week down more than 7%
Rolling 30 day correlation between bitcoin and the S&P500 Index hit all time highs this past week, according data compiled by The Block from Coin Metrics and FactSet.
Since bitcoin's inception, the correlation between bitcoin and the S&P500 has gyrated, switching between negative and positive several times — a sign of a non-significant relationship. Still, recent bitcoin correlation to the S&P500 tends to peak during sharp pullbacks in the price of bitcoin, as shown in the below chart.
Source: The Block, Coin Metrics, FactSet
U.S. and European equities have taken a beating throughout the month of March, as investors continue to digest the economic impact of the coronavirus. In the past 30 days (21 trading days) the S&P500 is down more than 30% from its peak. This week, however, bitcoin offered a reprieve from the sell-off. By last check, Bitcoin is up nearly 20% since last Sunday versus the S&P500 which closed the week down 7.5%, according to FactSet.
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