Bitcoin and the S&P 500 move in a close correlation. The Price Action 2023 is relevant for understanding direct correlation.

• Bitcoin and the S&P 500 move in a close correlation
• The Price Action 2023 is relevant for understanding the direct correlation
• If the stocks bounce off, Bitcoin should follow

For many years, cryptocurrency investors wished that Bitcoin was taken over by institutional investors. Finally her wish came true.

For various reasons,

Bitcoin is part of many institutional portfolios. Some believe that it is digital gold. Others say that due to its scarcity it has enormous upward potential.

No matter for what reason, Bitcoin is now part of the institutional investment world. But it had its price. Bitcoin was only another asset that is traded in correlation with regular markets such as the S&P 500.

Even the rally 2023 does not change the relationship, as can be seen in the following graphic.

Bitcoin-chart of tradingView

If the US shares recover from here, Bitcoin should increase even further

Yesterday Bitcoin tried again at the level of $ 30,000. Stuffed stocks.

But even then the correlation remains between the two. Therefore, the price development has been relevant since 2022.

In April 2020, the two performed similar appearances. But the scandals in the cryptocurrency industry sent Bitcoin down.

However, every upswing occurred exactly when the shares bounced off. The most recent price movement is relevant because Bitcoin participated in both climbs and declines on the stock exchange. Only the amplitude of the movements was different, just like then, when the price of Bitcoin was in the declining area.

All in all, it is hard to believe that this correlation will disappear in the foreseeable future. In addition, it is unlikely that Bitcoin would not recover if the shares should recover from here.