Bitcoin price seems to be reacting negatively to the increased uncertainty in the equity markets. The apprehensions around the second wave of COVID-19 and rising debt crisis is acting as resistance to the rise in the S&P 500 index. On the other hand, while gold has been holding on to its’ gains during these times, Bitcoin is starting to show weakness as well.
Charles Edwards, financial analyst and founder of Capriole Investments tweeted,
Bitcoin & stock correlation in 2020. We have (sadly) “re-coupled” as of 10 June. Correlations at all time highs.Notice the trend? High levels of fear and uncertainty (eg. VIX) = high levels of correlation.

Correlation So Far
Bitcoin has been following the SPX pretty closely lately, just weaker. I hope that relationship ends soon, one of the main reasons why crypto as a whole is so attractive is that it’s not correlated.
The 200-Day Moving Average for SPX 500 is at $2693, the equivalent on Bitcoin is at $6073. Moreover, in the view of the last drop, SPX range between $2,600 – $2,800 corresponds to a price range of $6,500-$7500 on Bitcoin.
Do you think that Bitcoin will hold true to its’ correlation with SPX in the near future? Please share your views with us.