Bitcoin has experienced a significant drop of 12.2% over the past week, while the S&P 500 index saw a more modest decline of 1.6%. This divergence marks a break in the historical correlation between the two as risk assets, despite facing similar macroeconomic pressures. The crypto market's sharper sell-off suggests heightened volatility compared to traditional markets.
Analysts indicate that a further decline in Bitcoin could lead to a 'rubber band' rebound once selling pressure eases, potentially resulting in stronger gains if the S&P 500 recovers. Despite the downturn, a survey reveals that 46.5% of traders remain optimistic, expecting Bitcoin to reach a new all-time high by the end of the year.
Bitcoin Drops 12.2% as S&P 500 Declines 1.6%, Breaking Correlation
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