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  • Bitcoin’s correlation to stock index S&P 500 has declined prominently. 
  • The decline in correlation means that the two asset classes are not moving in the same direction anymore. 
  • On April 16, the correlation was moderately positive at 0.53.

Bitcoin’s correlation to stock index S&P 500 has declined prominently, suggesting that the two asset classes are not moving in the same direction anymore. The correlation, measured through BTC/USD on Coinbase and S&P 500 futures, has touched a two-month low. At the moment, the correlation is 0.15 – a nearly negligible number. On April 16, the correlation was moderately positive at 0.53. 

Correlation is measured and expressed as a number between +1 and -1. +1 indicates a positive correlation between two assets (meaning they always move together in the same direction). On the other hand, -1 shows a total negative correlation. Having two low-correlated or uncorrelated assets in a portfolio helps in reducing overall volatility.