Bitcoin’s correlation with the S&P 500 reached a 9-year high

Crypto analyst Mattie Greenspan won the title of “father of the year” from the two hosts of Virtual Blockchain Week as he took care of his child by giving a presentation to participants at the virtual conference.Greenspan explained that Bitcoin and inherited assets are more closely related than you might think after the COVID-19 pandemic.

The founder of Quantum Economics shares the following chart “showing what is happening in cryptocurrency”. The following graph presents the Bitcoin correlation with the S&P 500 in the range from 1 (perfect correlation) to -1 (inverse correlation). For crypto enthusiasts hoping for a positive outlook for Bitcoin (BTC), Greenspan admitted that “most of you will not like what I have to say.”

BTC Correlation with S&P 500. Screenshot from Virtual Blockchain Week)

According to Greenspan data collected by Coinmetrics, the BTC and S&P 500 currently have a correlation of approximately 0.6. This is the highest correlation we have seen since January 2011, when the correlation was barely above 0.3. Greenspan says such a value shows almost no correlation.

He states, "nothing has emerged that defines 'cryptocurrency as our savior'. "Bitcoin is still considered a" risk asset "and" has not achieved safe haven status, which has taken gold thousands of years to build that status. "

Bitcoin is still generally improving in 2020.

Pausing the video link to feed her child, Greenspan continued her talk on How to Invest in a Post-Virus World, bringing Bitcoin’s 2020 performance against the US dollar.

(Yellow = Gold; Green = USD; Blue = S & P500; White = Silver; Purple = Crude Oil; Orange = BTC)

Bitcoin is “one of the best performers” since the economic impact of the coronavirus really took effect in April.

However, Greenspan pointed out that BTC grew by about 7% in 2020, in sharp contrast to oil, which reached negative levels last week.