Bitcoin Sees Increasing Correlation With Equities But Remains Relatively Weaker: Bitfinex

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Bitcoin Sees Increasing Correlation With Equities But Remains Relatively Weaker: Bitfinex
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Bitcoin’s correlation with the U.S. equities market has been rising for more than a month, as seen in the collective plunge and rally across different asset classes during the Japanese yen crisis earlier this month and the Federal Reserve’s statements at the Jackson Hole symposium last week., the Pearson Correlation metric, which measures the relative correlation of bitcoin with the S&P 500 and the NASDAQ, shows an increase in the 30-day correlation between the assets.

The S&P 500 index moved to 5461, 0.7% shy from its all-time high and significantly recovering from the 8% decline during the yen crisis. Notable rallies were also recorded across other assets, including gold.of 6%, its second-highest daily move since May 20. Analysts said the price jump signaled the return of risk appetite to the markets.Regardless of bitcoin’s rally, it has remained weaker than equities.

Meanwhile, analysts said bitcoin is trading within the trajectory of past bull cycles. The market is exhibiting a risk-on sentiment, encouraged by the current absence of supply overhang and the imminence of rate cuts.

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