Bitcoin (BTC) and the aggregated cryptocurrency market have been moving in tandem with the global markets throughout the past couple of weeks, which has made the nascent asset class subjected to significant selling pressure.<\/p>\n
This close correlation has led many analysts and investors to deem the cryptocurrency\u2019s classification as a safe-haven asset as nullified.<\/p>\n
In spite of this, it is important to note that the cryptocurrency has significantly outperformed the traditional markets<\/a> over a multi-month period, leading some analysts to be \u201csurprised\u201d at how well it has performed despite the significant turbulence in the global markets.<\/p>\n Bitcoin<\/a> has been closely tracking the major U.S. stock indices over the past few weeks, with their massive decent coming about in tandem with BTC\u2019s decline from recent highs of $10,500.<\/p>\n This correlation has become even more transparent today, with Bitcoin plummeting<\/a> roughly 7% from daily highs of $8,800 to lows of $7,700, which has come concurrently with the 6% selloff seen by the Dow Jones and other benchmark indices.<\/p>\n Jonny Moe, a prominent cryptocurrency analyst on Twitter, recently offered a chart showing Bitcoin\u2019s price action laid on top of that of S&P 500 futures, elucidating the striking correlation seen in recent times.<\/p>\n \u201cBTC shown overlaid with SPX futures ES over the last month. Tell me more about this lack of correlation,\u201d he noted while pointing to the chart seen below.<\/p><\/blockquote>\n $BTC<\/a> shown overlaid with $SPX<\/a> futures $ES<\/a> over the last month.<\/p>\n Tell me more about this lack of correlation. pic.twitter.com\/R0fALpX25T<\/a><\/p>\n — Jonny Moe (@JonnyMoeTrades) March 9, 2020<\/a><\/p><\/blockquote>\nBitcoin Forms Short-Term Correlation with Global Markets, Making it Prone to Further Downside<\/strong><\/h2>\n
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