Potential correlation between bitcoin and equities is in focus as the S&P 500 reached as far as 4.2% below its all-time highs.
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The two assets have been trading in a very correlated fashion since the start of the new year. With the stock market open this morning, both assets sold off in tandem, with bitcoin bouncing first with equities following, which serves as a strong sign for bitcoin investors.
Currently the rolling one-month correlation between the two assets is +46.7%.
Despite the mostly positive correlation between the two assets over the past 24 months, the S&P 500 is down by 76% in BTC terms since the start of 2020.
Investors across the equity and crypto markets are keeping a close eye on the upcoming CPI print this coming Wednesday, with the current prediction number at 7.1% year over year. The consensus is that the market’s selloff off in inflation comes in stronger than the predicted figure, with higher relative inflation meaning increased pressure for the Fed to hike rates in 2022.