Bitcoin’s correlation with the SP 500 is at its 9-year high

Cryptanalyst Mati Greenspan was named “Father of the Year” by the two hosts of Virtual Blockchain Week for taking care of his son while giving a presentation to virtual conference attendees. Greenspan stated that Bitcoin and legacy assets correlated more closely than could be expected under COVID-19.

Magnificent with a sharp tie, The founder of Quantum Economics showed the following chart, “which shows what happens to cryptocurrencies”.. The following table shows the correlation of Bitcoin with the SP 500 in a range from 1 (perfect correlation) to -1 (inverse correlation). For crypto enthusiasts expecting a positive outlook for Bitcoin (BTC), Greenspan admitted, “Most of you won’t like what I have to say.”

Bitcoin’s correlation with the SP 500 is at its 9-year high
Bitcoin’s correlation with the SP 500 is at its 9-year high

BTC correlation with the SP500. Screenshot of the Virtual Blockchain Week

According to data from Greenspan compiled by Coinmetrics The BTC and the S P 500 currently have a correlation of around 0.6. This is the highest correlation we have seen since January 2011, when the correlation barely exceeded 0.3. According to Greenspan, such a value indicates almost no correlation.

He argues that “nothing has appeared that says cryptocurrencies will be our saviors”. Bitcoin is still considered a “risk asset” and “has not achieved the status of a safe haven that gold took thousands of years to build”.

Bitcoin has improved in 2020

Pause to give your child some snacks, Greenspan continued his talk on “How to Invest in a Postvirus World” by increasing Bitcoin’s 2020 performance against the US dollar.

Yellow = gold; green = USD; blue = S P500; white = silver; purple = crude oil; orange = BTC

Screenshot of the Virtual Blockchain Week

Bitcoin was “one of the best” since the economic effects of the corona virus actually took effect in April. However Greenspan found that BTC rose about 7% by 2020, unlike oil, which was negative last week..

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