The index of the 500 largest publicly traded firms, the S&P 500 is falling for the last 5 days along with the crypto market as the prices of Bitcoin, Ethereum, and Solana are down. As noted, the stock market index has fallen by 0.8% today from Monday.
On Sunday, the total valuation of the crypto market stood at $2.43 trillion, and this week, this market is also down as it is standing at a market valuation of $2.2 trillion marking a 9% fall.
Though the cryptocurrencies managed to stabilize after the fall, they have restarted falling further.
In accordance with the data shared by the leading market aggregators, Bitcoin has slumped 3% in the past 24 hours, Ethereum has slipped 7% and Solana has fallen 9%.
This data shows that there is a chance the crypto market is somewhat resonating with the S&P 500.
Also, it should be noted that there have been instances where Bitcoin and the stock market index have been found aligning to each other regardless of the fact that Bitcoin is not considered safe while the index is considered a safe haven. Though there are uncertainties in the stock market too, they are entirely regulated, unlike cryptocurrencies.
Well, it is not a thing to be surprised at, but Bitcoin was resonating more in the year 2020 with gold, which is considered the safest of all.
As per the reports, they resonated around 34% and since then, it hasn’t been the same.
Over the last year, the two entirely different markets, are just 15.5% correlated.
Still, it should be noted that the increased correlation depicts the growing interest of institutional investors in cryptocurrencies and Bitcoin specifically.
MicroStrategy and Square, both reportedly accumulated a huge amount of BTC earlier this year.