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Bitcoin Ends Q1 Closely Following S&P 500
Data from TradingView shows a correlation between bitcoin and the S&P 500 as bitcoin drops below $45,000.
By Sam Reynolds
Updated May 11, 2023, 5:23 p.m. Published Apr 1, 2022, 7:49 a.m. 1 min read
As the S&P 500 closed out the first quarter down 5.5%, bitcoin closely followed, with the world’s largest digital asset tied to the S&P 500 as closely as ever.
- Bitcoin closed the quarter down 2%, tightening the correlation with the S&P to nearly 0.9 (1 is perfect correlation, -1 is perfectly inverted).
- While bitcoin touched $48,000 earlier in the week, it has since dropped below $45,000.
- The correlation between the index and bitcoin appears to be cyclical; bitcoin’s losses will outpace the stock market’s given the 24/7 nature of the asset.
- Likewise, its fast rebound will also outpace the S&P.
- Traders are concerned about the prolonged nature of the Russia-Ukraine war, and threats from the Kremlin to cut off Europe’s supply of natural gas unless the contracts are denominated in rubles.
- As CoinDesk previously reported, although bitcoin had one of its worst-ever starts to a year, it ended up gaining around 9% throughout March occasionally outperforming U.S. stocks.
- However, many layer-1 tokens like Solana, Terra, AVAX and Cardano were able to outperform bitcoin with double-digit gains on mainstream curiosity about the launch of Ethereum 2.0 according to analysts who spoke with CoinDesk.
Lebih untuk Anda
From May 20 to May 29, XRP funds took in $35 million while bitcoin and ether ETFs lost roughly $2 billion combined, with Ripple’s earlier reported XRP treasury plan still awaiting confirmation.
Yang perlu diketahui:
- U.S.-listed spot XRP ETFs drew $11.88 million in net inflows on May 29, extending a week of gains even as bitcoin and ether funds saw continued redemptions.
- Total net assets in U.S. XRP ETFs now stand near $1.12 billion, with about $35 million added since May 20 while bitcoin and...
