Are Crypto and Stock Markets Still Unrelated? By U.Today

From Investing.com: 2024-05-12 06:00:22

BTC’s extreme volatility poses challenges for traders as it plunged 64% in 2022 but surged 160% in 2023. Meanwhile, S&P 500 offers stable yet lower returns, making it a favored choice for risk-averse investors. Glassnode suggests adding small crypto allocations for enhanced returns. BTC performed impressively in Q1 2024 with a 69% return, showcasing minimal correlation with traditional assets. Despite a 15% drop in Q2, BTC maintains independence from traditional markets with declining volatility over time. Bitcoin’s correlation with the S&P 500 varies based on significant price movements. The increasing involvement of institutional and retail investors in both equity and crypto markets could align the price movements of these assets.

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