Bitcoin’s Negative S&P Correlation Explained

Bitcoin’s Negative S&P Correlation Isn’t a Bullish Signal, Analyst Warns

I see many people getting happy because Bitcoin and stocks are moving in different ways, but analyst Axel Adler Jr. say this is not a bullish sign for your portfolio.

You should realize that this decoupling only happen because Bitcoin has small bounces while the S&P looks weak.

Expert Axel Adler Jr. explain that the BTC/S&P price ratio is a much better way to track your money.

You see that this ratio is falling since the year started, which mean stocks are winning the race.

I know that a negative correlation just means the two markets do not move together every single week.

This lack of sync does not prove that Bitcoin has its own strength right now.

You need to see a real upward trend in the price ratio before you believe Bitcoin is independent.

Bitcoin still acts like a high risk asset that stays vulnerable to big economic problems.

I tell you that Bitcoin will not escape the pressure if the S&P 500 keeps going down.

Bitcoin price dipped to $65,000 this week before it tried to go back up to $68,000.

I see the price is currently around $67,000, which is a drop of 1.4% in one day.

The asset lost almost 10% in two weeks, though it stays flat over the last month.

Oil prices jumped 50% recently because of trouble in the Strait of Hormuz.

I think this messy background makes it hard for Bitcoin to act on its own.

You must look for consistent performance to see if the market is really changing.