The correlation between Bitcoin and the S&P 500 Index is at its highest since 2020.
Analysts at Arcane Research have shared the results of a study showing that the correlation between the first cryptocurrency and the S&P 500 has reached a record high since October 2020.
The total daily trading volume of BTC has been at its lowest since June 2021 — about $21 billion. Moreover, the highest trading activity coincides with the U.S. trading hours — roughly 43% of Bitcoin’s spot volume.
As of 11 a.m. (GMT+2) on January 20, the price of Bitcoin is about $41.800, according to CoinMarketCap. Overall, Bitcoin lost about 10% of its value over the month, and on January 10, its price dipped below $40.000 for the first time since last September. BTC has fallen by about 40% since it set an all-time high in November 2021.
At the same time, Bitcoin has been trading in a fairly narrow range during the last month — the 30-day volatility currently sits at 2.5%. This is the lowest level in more than a year, as Arcane Research analysts also point out. Recall that just yesterday, Glassnode shared expectations of a surge in volatility amid an overheated futures market and general market uncertainty.
