CryptoQuant Analyst: Bitcoin's Correlation with the S&P 500 Breaks Zero for the First Time in Ten Years

CryptoQuant analyst Darkfost pointed out that, calculated over a 90-day rolling window, the cumulative Z-score of the correlation between Bitcoin returns and S&P 500 returns has risen above zero for the first time since 2015, reaching 98.5. A score above 0 indicates that the correlation of Bitcoin is higher than usual, while a score below 0 indicates lower correlation. The cumulative Z-score summarizes deviations to present trends. Darkfost noted that this trend has been clearly upward since the low point, and this breakthrough is symbolic, as Bitcoin is increasingly moving in tandem with the stock market.

Darkfost also pointed out that the recent momentum of this correlation is slowing down. The rate of change in the short-term 90-day correlation has fallen from recent highs to 6.3%. The correlation between the two remains above average, but it is no longer strengthening as rapidly as before. He believes this is mainly due to market maturation, as more financial professionals are increasingly using Bitcoin as a conventional financial tool with the improvement of ETFs and trading channels.