Bitcoin’s correlation with the S&P 500 has fallen to -0.88, the lowest level in more than four years 🔻

While the S&P 500 has hit new highs and is up 9% in the past 120 days, Bitcoin has fallen 20% from its peak and is down about 18% over the same period. Similarly, Bitcoin’s correlation with the Nasdaq is at its lowest level in more than a year.

Factors such as selling pressure from the U.S. and German governments, concerns about Mt. Gox’s Bitcoin distribution, and potential fiat liquidity issues have caused Bitcoin’s price to fall despite the surge in stocks.

To return to normal correlation levels, the S&P 500 either needs to fall or Bitcoin needs to rise.