Bitcoin [BTC], Gold, S&P 500 and a case of the widening correlation

ambcrypto.com:

Over time, the degree of correlation between the traditional market and the crypto-market has shifted. Both open questions are how much the gap widened and what caused the prevailing correlation.

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The crypto-SPX correlation is the relationship between the price of Bitcoin or Ethereum and the S&P 500 index – A standard measure of stock market performance in the United States. Gold’s price change is added to that of the S&P 500 to get a better insight into the divergence. The price trends of conventional assets and cryptocurrencies are compared to determine whether they follow a similar pattern.

According to a new report by Santiment, the S&P 500, Gold, and cryptocurrency prices are no longer moving in sync. Although cryptocurrencies like Bitcoin and Ethereum continued to struggle on March 6, the study indicated that Gold and the stock market saw some improvement.

Source: Santiment

The S&P 500 had started to rebound as of March 2 on the daily timeframe chart. The recovery came after several weeks of a downward trend, also visible on the chart.

The graph demonstrated that since its recovery started on March 2, it hiked by over 3%. It was selling at $4,059, up about 0.16% at press time. A weak bull trend was also indicated by its Relative Strength Index line as it crossed the neutral line to the upside.

Source: TradingView

And yet, over the same period, a look at BTC’s charts revealed that it has been battling to bounce back after its nearly 5% loss on March 3. It soon gained marginally, with the crypto trading at about $22,500.

The Relative Strength Index (RSI) line was below the neutral line, indicating that it has continued to struggle. 

Source: TradingView

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