- Bitcoin had risen by 5.95% in the last 24 hours to the time time.
- The King Coin has been strongly correlated with the stock market since August 2024.
Since the announcement of global rates six days ago, the American market has seen a sharp decline, with the S&P 500 saw three consecutive days of decline.
These conditions on the stock market have had far -reaching consequences for the cryptomarkt. As far as cryptoquant analyst Frost has suggested that Bitcoin is strongly correlated with the stock market.
How much is Bitcoin correlated with the stock market?
According to CryptoquantBitcoin has shown a high correlation with the S&P 500. At the time of the press, the correlation ratio had evolved around 0.8, indicating that the crypto is strongly correlated with these assets.
Bitcoin and the S&P 500 have remained closely correlated since September 2024.
Source: Cryptuquant
The correlation remains the same between Nasdaq and BTC and has remained intact since mid -August 2024. At the time of the press, the ratio was around 0.8, which indicates a considerable correlation between the two markets.
This correlation is even more constant than that of the S&P 500.
Source: Cryptuquant
This correlation has become more often as the world market collapsed, after widespread rates.
The same pattern was seen last day after speculation of a 90 -day rate break. As such, all important indexes increased from this speculation, whereby the Nasdaq composite rises by 0.1% as the technology-related shares recovered.
The same happened with Bitcoin, which rose to a highlight of $ 81180.
Source: Checkonchain
Looking at comparative rolling performance, BTC, SPX and NDQ both followed the same pattern until March and April 2025.
During this period all these assets fell, suggesting that there is a strong market correlation that results from macro-economic stress and risk-off sentiment.
Source: Checkonchain
This is further validated by Bitcoin’s relative drawings, where BTC has followed the same correlation risk with other assets. Drawdowns are synchronized with shares, which indicates the correlations for risk-on/risk-off macro-sentiment.
That is why the recent market performance shows that there is no doubt about it, BTC is still strongly correlated with the stock market.
What is the next step for BTC?
According to Ambitrypto analysis, Bitcoin is currently strongly correlated with stock markets. That is why, when stock markets see extreme volatility and uncertainty, the same fate is confronted with Bitcoin.
Conversely, a recovery in macro economics and stock markets that institutional investors are strong enough, which increases BTC to higher prices.
If the recent uncertainty on the stock market persists, BTC will continue to fluctuate with $ 74k as a strong level of support. Conversely, if the market cools down to restore trust with investors, BTC will reclaim $ 82500.
