Bitcoin and S&P 500 Correlation Plummets, May Indicate Potential Bottom

The correlation between Bitcoin (BTC) and the SP 500 (SPX) has fallen to 0.05, indicating market divergence. Over the past five years, the two have been highly positively correlated during the epidemic and between the end of 2021 and 2022. both rose significantly in early 2024. However, while the SPX continues to hit new highs, BTC hovers around $60,000, occasionally dropping below that level. Since 2019, BTC and SPX have been negatively correlated four times, each time indicative of a localized low in Bitcoin's price.