False Safe Haven: Bitcoin’s Correlation With S&P 500 Exceeds the All-Time High

The correlation between Bitcoin and the S&P 500, and thus the stock market, has now reached a new all-time high (ATH).

Bitcoin Correlation With S&P 500 Reaches New High

As an expert noted in a CryptoQuant post, the correlation between Bitcoin and the stock market is at an all-time high, further undermining the “safe haven” myth.

The “Bitcoin correlation with the S&P 500” is a technical indicator that indicates how strongly the price of BTC reacts to S&P 500 volatility, as well as the direction of the reaction.

When the indicator exceeds zero, it indicates that there is a positive correlation between the stock market and the current price of the cryptocurrency. “Positive” in this context refers to BTC moving in the same direction as the S&P 500.

Correlation values smaller than zero, on the other hand, imply that BTC moves in the opposite direction of the S&P 500.

When the indicator’s value is equal to zero, there is no correlation between the two assets. Now, here is a graphic illustrating the link between the S&P 500 and Bitcoin since 2013:

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As illustrated in the accompanying graph, the connection between Bitcoin and the S&P 500 has fluctuated between positive and negative values during the majority of BTC’s history.

However, the two assets have developed a strong, positive correlation between them between late 2019 and early 2020. The indicator saw a slump in 2020 as a result of the COVID sell-off, but has since recovered significantly in the second half of 2021 and 2022.

This month, the correlation between Bitcoin and the stock market reached a new all-time high (ATH) of +0.5468.

Due to the high connection between the assets, the narrative of “digital gold” has been weakened further, since cryptocurrency is no longer the safe haven it once was.

Bitcoin Price

Bitcoin’s price is hovering at $39k at the time of writing, down 13% in the last seven days. The cryptocurrency has increased in value by 10% during the last month.

The chart below illustrates the price trend of BTC over the previous five days.


Bitcoin’s price plummeted a few days ago, reaching as low as $36.4k. Since then, the coin’s value has recovered slightly, breaching beyond the $39k mark again today. At the present, it is unknown whether this new upward trend will continue.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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