He illustrated this take with a chart from CoinMetrics, a major blockchain data research platform. It demonstrates that the correlation between the two values has been plummeting since early 2023.
So far, it is the largest decline of this metric since the 2018-2019 bear market peak. The Bitcoin/SPX500 correlation printed an all-time high at 0.7 in Q1, 2022.In the early years of Bitcoin's history, the correlation was mostly negative, as BTC was not mature enough. At the same time, during the 2020 crisis, the correlation started growing.
At the same time, Bitcoin is still correlated to Nikkei 225, a Japanese version of SPX500, as reported by U.TodayAlso, in June 2023, Bitcoin lost its correlation with gold. The assets share a reputation asGreenspan avoided indicating the root causes of such an impressive"decoupling." However, he hinted that it might be associated with the painful phase of bearish recession for Bitcoin :
Call it a bear market phenomena or whatever you want. Data from CoinMetrics shows that BTC and the SPX500 are no longer a couple. We wish them a happy break up! Also, analyst PlanB opined today that the market is in an accumulation phase, the last depressive one before the start of a new bullish rally. He expects it to come in 2024-2025, as U.Today