Santiment mentions high correlation between BTC and S&P 500

by in Cryptocurrency News

BTC

Over the past few days, the correlation between Bitcoin and the US stock indicator S&P 500 has increased again. That is an alarming trend, analysts from the Santiment team say.

Their report says that the US market is now stagnating due to the upcoming presidential elections.

The Federal Reserve System announced the launch of a new business stimulus program. However, the date of the start of capital injection into the economy is still unknown. Nervousness in the camp of traders is increasing, as they are not sure that the market will start growing after the elections and the Fed's steps to stimulate the economy.

If the financial sector support program does not give the expected result, and the S&P 500 begins to decline, then Bitcoin is also threatened with a pullback.

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The largest digital currency against the backdrop of the crisis around the OKEx exchange fell sharply. She then bounced back a bit, going up to $ 11,454 on Sunday, October 18th.

Trading in the US ended this week with the minimum growth of the S&P 500 (up to 3,488 points). According to analysts, the inflow of capital into high-tech sectors supported BTC, which allowed the coin to win back some positions.

Bitcoin will be able to "shoot" only if its dependence on the stock market is minimal, according to the report Santiment.

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The experts added: "Over the long period that COVID-19 took hold in the mass consciousness, the correlation between the two markets (S&P 500 and Bitcoin) was abnormally high. A drop below zero would be an encouraging bullish sign."