Bitcoin's Correlation with S&P 500 Dips from Recent Highs

Nov 03,2022
Bitcoin's Correlation with S&P 500 Dips from Recent Highs

According to Charles Schwab&Co Views of Liz Ann Sonders, a top project investment analystBTCThe S&P 500 index fell from its recent peak.

At this stage, the indicator is 0.58, which is still in a "proactive" situation.

The correlation with the stock index should be quantified by a ratio of - 1 to 1. 1 indicates that these properties have been moving in the same direction (on the contrary).

imageReported by:Because of the strong profit season, individual stocks rebounded sharply in the middle and late October, but BTC and other key digital currencies did not follow suit. During the quarterly financial reporting period, after investors regained some enthusiasm for assets with relatively high risks, digital currency came to individual stocks, and BTC reached a spiritually important price of 20000 dollars in the middle and late October.

The constant relative high correlation between BTC and US stocks has been one of the important things in the tightening cycle of the Federal Reserve (Fed) this year.

At this stage, stocks and digital currencies are still hesitatingFederal Reserve MeetingIt is estimated that the long-awaited rate hike will be announced on Wednesday at the beginning. The consensus in the sales market may be that the US Central Bank will raise the benchmark lending rate by 75% again, which will mean that it will continue to raise interest rates in this volume for the fourth time.

The Dow fell a little more than 100 points before a certain date. BTC fell 0.4%, and the current transaction price is 20414 dollars.