Bitwise: Bitcoin-S&P 500 correlation falls to -0.6, lowest since 2015, a level that previously preceded a 9,800% rally
Bitwise's new market report highlights that Bitcoin's rolling 260-day correlation with the S&P 500 has dropped to approximately minus 0.6, marking its lowest level since 2015. The last time this relationship reached comparable levels, Bitcoin subsequently saw a historic rally of roughly 9,800% between mid-2015 and late 2017. While Bitwise cautions that a repeat performance is unlikely due to Bitcoin's increased adoption, it suggests this divergence could indicate scope for Bitcoin to catch up relative to US equities. The asset manager also notes that Bitcoin appears more sensitive to monetary policy expectations, while stocks are more sensitive to global growth expectations, contributing to the current decoupling.
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