Bitcoin's correlation to equities returns after fading in May
Bitcoin's relationship to the S&P 500 has returned to March levels of correlation after a period of essentially zero correlation throughout May.
As measured by the Pearson correlation between hourly returns of SPX500USD (S&P 500 futures) and BTC/USD on Coinbase, the current correlation stands at 0.31 — a figure that is low but statistically significant. During May, correlation reached 0 meaning that there was no correlation. That's quite a contrast from January when Bitcoin manifested low but statistically significant negative correlation.
Source: Tradingview, The Block Research
In contrast, the correlation between the S&P 500 and Gold also spiked to historical levels in late March and early April but the precious metal is not correlated. The recent trend of the growing correlation between the S&P 500 and Bitcoin is not present between the S&P 500 and Gold, as the below chart indicates.
Source: Tradingview, The Block Research