Bitcoin's Correlation with the S&P 500 Index Surpasses Zero

CryptoQuant analyst Darkfost pointed out that the cumulative Z-score of the correlation between BTC returns and S&P 500 returns, calculated using a 90-day rolling window, has surpassed zero for the first time since 2015, reaching 98.5. A score above 0 indicates that the correlation of BTC is higher than usual, while a score below 0 indicates a lower correlation. Darkfost noted that this trend has been clearly upward since the low point, and this breakthrough is symbolic, meaning that BTC is increasingly moving in tandem with the stock market. The recent upward momentum in correlation is slowing down, with the short-term (90-day) rate of change in correlation having fallen from a recent high to +6.3%. This indicates that the correlation between the two remains above average, but it is no longer increasing as rapidly as before. Darkfost believes this is mainly due to market maturation, as more financial professionals are increasingly using Bitcoin as a conventional financial tool with the improvement of ETFs and trading channels.

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