#BTCvsMarkets
Bitcoin's relationship with traditional markets is complex and influenced by various factors. Here's a breakdown ¹ ² ³:
- *Correlation with S&P 500*: Bitcoin has shown a notable correlation with the S&P 500, with a 30-day rolling correlation often exceeding 0.7. This suggests that Bitcoin's price movements are closely tied to broader market sentiment.
- *Global Liquidity Impact*: Bitcoin's price tends to rise in tandem with global liquidity, particularly when central banks expand the money supply. This correlation is evident in the M2 Global measure, which tracks the money supply from top central banks.
- *Risk Asset Behavior*: During periods of high correlation, Bitcoin behaves like a risk asset, influenced by macroeconomic factors and market sentiment. However, when it decouples from equities, its price movements are driven by intrinsic fundamentals like supply dynamics and adoption trends.
- *Current Price and Market Cap*: As of April 24, 2025, Bitcoin's price was around $93,697, with a market capitalization of approximately $1.76 trillion.
Some key statistics to watch ¹ ⁴:
- *30-day correlation with S&P 500*: 0.32
- *Current S&P 500 price*: $5,375.86
- *Bitcoin's 52-week price range*: Not available in the search results, but the current price is near its 52-week high
Keep in mind that correlation doesn't imply causation, and Bitcoin's relationship with traditional markets can evolve over time. Understanding these dynamics can help investors make informed decisions.
