{"id":418456,"date":"2020-03-17T16:00:38","date_gmt":"2020-03-17T16:00:38","guid":{"rendered":"https:\/\/shenyangcang.com\/?p=418456"},"modified":"2020-03-17T13:57:49","modified_gmt":"2020-03-17T13:57:49","slug":"bitcoins-minute-by-minute-correlation-with-stock-market-may-signal-disaster","status":"publish","type":"post","link":"https:\/\/shenyangcang.com\/news\/bitcoins-minute-by-minute-correlation-with-stock-market-may-signal-disaster\/","title":{"rendered":"Bitcoin\u2019s Minute-By-Minute Correlation With Stock Market May Signal Disaster"},"content":{"rendered":"

For most of Bitcoin<\/a>\u2019s life, it\u2019s been a pitched as an asset uncorrelated from the stock market and other traditional equities. It’s been a strong selling point for institutional investors seeking to add variety or even derisk their portfolios.<\/span><\/p>\n

However, as of late, the first-ever cryptocurrency has been exhibiting a minute-by-minute correlation with the stock market, and if it continues, it could spell doom for the young digital asset.<\/span><\/p>\n

Bitcoin Begins to Show Minute-By-Minute Correlation With S&P 500<\/h2>\n
While Bitcoin<\/a> was born during the last recession, it is about to face the first major recession since it was first introduced into the world, and no one yet knows how it will react.<\/span><\/p>\n
The cryptocurrency was designed to have certain attributes<\/a> that made the asset far more comparable to a scarce commodity<\/a> like gold, rather than a currency that can be printed at whim or a stock share tied to the value of a corporation.<\/span><\/p>\n
Related Reading | No Haven Safe: Silver, Gold and Other Precious Metals Nosedive Alongside Bitcoin\u00a0<\/a><\/strong><\/em><\/p>\n
It\u2019s helped to position the asset as a highly uncorrelated asset that investors should at least include a small portion of within their investment portfolio.<\/span><\/p>\n
However, over the last couple of weeks, with the coronavirus outbreak<\/a> causing a panic selloff of epic proportions, Bitcoin has suddenly shown a correlation with the stock market.<\/span><\/p>\n
And more recently, the correlation has become so significant, Bitcoin<\/a> and the S&P 500, one of the most important stock indexes to the US economy, are showing an uncanny, minute-by-minute similarity.<\/span><\/p>\n
\n
1 minute chart.<\/p>\n
One of these lines is the S&P500, one of these lines is bitcoin. pic.twitter.com\/N3vIS5Kl6X<\/a><\/p>\n
— lowstrife (@lowstrife) March 16, 2020<\/a><\/p><\/blockquote>\n