Data: Bitcoin's negative correlation with the S & P 500 index is weakening

According to CoinDesk, for most of the year, the price of bitcoin and the S & P 500 showed a modest negative correlation. In other words, BTC tends to rise on days when the leading stock market index falls, and vice versa. But according to information provided by Digital Assets Data, the relationship has weakened since early October. As shown in the figure, this degree of correlation once entered the negative range of 20-30, and now it tends to be negative about 10%. The closer the correlation between Bitcoin and the stock market is to zero or positive correlation, the harder it is to treat Bitcoin as a safe haven asset. Kevin Kaltenbacher, a data scientist at Digital Assets Data, said, "Negative correlations support BTC's value storage / digital gold theory because it can be inferred that investors may have been buying the asset to hedge against global economic turmoil. However, recent data Changes may pose some challenges to this statement. "