Bitcoin (BTC) $102,673.0has gained remarkable stability after the “Trump Pump” effect experienced in the last two weeks. Today, it consolidated between 99 thousand dollars and 90 thousand dollars for a long time before exceeding the 100 thousand dollar threshold overnight. The cryptocurrency market, especially Bitcoin, showed a close correlation with the S&P 500 during this period. Throughout the year, the largest cryptocurrency has often been humorously referred to as a “highly leveraged tech stock.”
Bitcoin’s Correlation with S&P 500
Bitcoin’s price movements, especially in recent months S&P 500 showed parallelism with . According to Santiment analysts, this is the biggest cryptocurrencyIt shows that Turkey is increasing its dependence on traditional financial markets. However, this relationship caused different opinions among investors. Some experts argue that this correlation may lead to uncertainty in the market in the short term.
It has been possible to trace Bitcoin’s tight tie to the S&P 500 throughout this year. Particularly market conditions and macroeconomic developments supported this correlation. However, historical data reveals that cryptocurrencies perform better when they act independently of exchanges.
Weakening Correlation Could Signal a New Direction
Experts think that the divergence of the cryptocurrency market from stocks in the long term could be a positive sign. In particular, Bitcoin’s independence from traditional markets could increase investor confidence. It is known that such independent movements brought serious increases to the market in the past.
Analysts will closely monitor Bitcoin’s breakout of its tie with the S&P 500 in the coming period. Such a break cryptocurrency marketIt may trigger a new uptrend. Investors can consider this situation as an opportunity.
Bitcoin’s increased market independence both itself and altcoinIt will be a critical step for the future of ‘s. This situation may create new opportunities, especially for long-term investors.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
