Bitcoin and S&P 500 Correlation Hits Record High Since 2020

The volatility of the first cryptocurrency fell to a minimum in more than a year, Arcane Research analysts say

The correlation between the Bitcoin exchange rate and the S&P 500 index has reached a record high since October 2020, according to the analytical company Arcane Research. Analyst research results indicate that 30-day volatility is at its lowest level in more than a year (2.5%) as bitcoin trades in a tight range.

S&P 500 (Standard & Poor’s 500 Index) is an American stock index that reflects the dynamics of the stock price of the 500 largest companies by market capitalization in the US market.

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🔹#Bitcoin’s 90-day correlation to the S&P 500 is currently at its highest since October 2020
🔹#Bitcoin trading volumes are at their lowest since July
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— Arcane Research (@ArcaneResearch) January 18, 2022

According to Arcane Research, Bitcoin trading volumes have also fallen to their lowest level since July 2021. The highest activity (43% of BTC trading volume) occurs during the opening hours of the US stock market.

On January 19, Bitcoin is trading at $41.9 thousand. Over the month, the cryptocurrency has fallen in price by 10%, and its capitalization has decreased to $795 billion, according to CoinGecko.