The correlation between the Bitcoin exchange rate and the S&P 500 index has reached a record high since October 2020, according to the analytical company Arcane Research. Analyst research results indicate that 30-day volatility is at its lowest level in more than a year (2.5%) as bitcoin trades in a tight range.
S&P 500 (Standard & Poor’s 500 Index) is an American stock index that reflects the dynamics of the stock price of the 500 largest companies by market capitalization in the US market.
According to Arcane Research, Bitcoin trading volumes have also dropped to their lowest level since July 2021. The highest activity (43% of BTC trading volume) occurs during the opening hours of the US stock market.
On January 19, Bitcoin is trading at $42.2 thousand. Over the month, the cryptocurrency has fallen in price by 10%, and its capitalization has decreased to $795 billion, according to CoinGecko. On January 10, the price of the asset fell below $40,000 for the first time since September. In early November 2021, the price of bitcoin hit an all-time high above $69,000. Since then, it has fallen in price by almost 40%.
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