On January 24th, according to institutional analysis, Bitcoin and U.S. stocks are more closely linked. Bitcoin and stocks are more and more closely linked. If the U.S. stock market slump continues, this is a bearish signal for cryptocurrencies.
Bitcoin’s 30-day correlation with the S&P 500 rose to nearly 0.7 from 0.6 a week ago. It’s hard to say right now that Bitcoin is doing better than U.S. stocks, which peaked in November last year and have since fallen sharply, while the S&P 500 tumbled after rising in early January.
Bitcoin and the S&P 500 have been in sync this month, suggesting that Bitcoin is a risk asset rather than an inflation hedge.