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
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Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].
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