#BTCvsMarkets 💰 Correlation of Bitcoin and S&P 500: a key for investors

📊 The correlation between Bitcoin and S&P 500 reveals the cryptocurrency's connection to the markets! 🌐 Correlation values range from -1 to 1 — over the past 5 years, their 30-day correlation has exceeded 70% 🔥. This shows that BTC reacts to macroeconomics like a risk asset, especially during crises (COVID-19) 🌪️. In 2019, their correlation turned negative: Bitcoin rose from $3000 to $12000, while stocks were more modest 📈➖📉.

🔄 BTC is unpredictable!

🦠 At the beginning of 2020, BTC and S&P 500 had a negative correlation, but with the onset of the pandemic, they synchronized 🎢. Central banks and crises tied their movements together, and in 2022–2023, the connection strengthened due to inflation and Fed rates 💸. But the uniqueness of BTC is revealed in its cycles: supply (21 million), halvings, and mass adoption can break the connection with stocks 🚀.

🔮 What does this mean for portfolios?

⚖️ High correlation — BTC moves with the market (risk + return) 📌. Low — a chance for growth based on its own factors (halving 2024) 💎. Investors are watching macro trends: if S&P falls and Bitcoin rises — it's a signal for diversification 🌍. The main rule: BTC is not digital gold, but an asset with a dual nature — sometimes a risk, sometimes a hedge against the system 🛡️. #CryptoNews