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In today’s article, primexbt exchange will send readers information about the influence of the S&P 500 on Bitcoin recently.

Compare the S&P 500 to Bitcoin

Many comments that Bitcoin tends to depend on the US financial market, especially the S&P 500 index. Last month, this correlation was analyzed under many angles with many conflicting arguments. We see Bitcoin’s weak divergence succumbing only to stock market swings. In the words of one analyst, if we look at the numbers for the past month and a half, we will see the fact that Bitcoin is worse than the S&P 500.

Eric Wall, CTO of Arcane Assets makes a potentially disheartening comment: Bitcoin is underperforming the S&P 500. To understand this, let’s look at the following numbers. From February 24 to March 23, the S&P 500 fell about 33%. During this time, Bitcoin also dropped 40%. A few weeks ago, the S&P 500 rallied again. From March 23 to April 9, the S&P 500 rose 25%. At the same time, BTC is up 24%.

The most notable exception is the Bitcoin drop on March 12 that caused the entire electronic convenience market to drop by about 50%. The losses were so severe that some long-term investors had to sell off.

Wall thinks there is no sign of the S&P 500 collapsing. Volatility and recovery is normal, especially during times of crisis. And there is no reason to say that Bitcoin will not be affected by the next drop of the S&P 500. If in doubt, the past tells us that the crypto market could be in for a serious decline. more important, and perhaps Wall agrees.

See more: Bitcoin and Altcoins Are Ready for the Next Profits

Verdict for Bitcoin

Looking at the numbers, it’s hard to argue that Bitcoin has been completely immune to the S&P 500. At least for now, Bitcoin has failed the crisis. It is true that the S&P 500 is more likely to decline than Bitcoin, but there is no guarantee that Bitcoin will not fall. However, it should be noted that these are only short-term fluctuations.

While macroeconomic indicators are causing concern, Bitcoin’s next halving likely won’t have an immediate impact on the price. Previously, it was a long time after the halving event that Bitcoin had the fastest price increase that was not before or immediately after the halving. However, it seems that Bitcoin is still closely tied to the US financial markets, so smart traders should keep an eye on macroeconomic trends to plan accordingly.