NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: WLFI Price Dips 7% As Eric Trump Leaves World Liberty Treasury Company ALT5 Sigma
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: WLFI Price Dips 7% As Eric Trump Leaves World Liberty Treasury Company ALT5 Sigma

Bitcoin Price and Stocks Do Not Correlate, Indicates Latest FRED Data

Davit Babayan
Davit Babayan
1 year ago
2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Cryptocurrency and stock price movements do not correlate with each other, indicated the latest Federal Reserve Economic Data (FRED).

The data pitted S&P 500 index performance against the cryptocurrency index managed by US-based Coinbase crypto exchange platform. The results were some interesting shaky lines – often going in the same but mostly in the opposite directions. FRED merely indicated how those two trended between a specified period – beginning in October 2018 and ending in April 2019. But the organization backing the database didn’t clarify anything further.

Rise in Correlation

The revelation followed a strong bearish phase in both the US stock and global cryptocurrency markets. In 2018, the S&P 500 posted more than 6 percent loss, while the crypto phase suffered a drastic 85-percent value depletion. For the Q4 2018, the S&P plunged 13.97-percent. At the same time, the cryptocurrency market capitalization, owing to negative sentiments around the Bitcoin Cash hard fork, dropped to $130 billion from $230 billion.

https://twitter.com/OccupyWisdom/status/1115832774492078080

From a microscopic view, both the bitcoin – the most dominant crypto asset – and S&P were moving in tandem. They also started also recovering around the same time and posted impressive corrections throughout the Q1 2019. However, the cracks began to appear when it came to larger timeframes.

Source: Forbes

Blockforce Capital, a US-based asset management firm, noted an increase in correlation between the S&P and the bitcoin.  However, they didn’t think it was worth making a fuss about it.

“Historically, the correlation between the S&P 500 and Bitcoin has been insignificant. Although correlation values between the two asset classes have ticked up this year versus historical averages, with the current correlation hovering around .11, we believe this to be an insignificant value and don’t believe the two markets to be related,” Blockforce CEO Eric Ervin told Forbes.

The Fed’s Interest Rate Connection

There was a likelihood that both S&P and crypto assets reacted to an external factor than each other: the Fed interest rate hikes in 2018.

The quantitative tightening program initiated by the US central bank left the investors cash-strapped for most of the year. With limited dollar supply available – the very currency one needs to sustain livelihood – it was likely for investors to exit their stock positions to claim back their greenbacks. The gloominess spread to an already-bearish cryptocurrency market, noting a drop in investment influx.

Market reactions to the Fed:

Gold: I'm lovin' it

Bitcoin: what is the Fed? interest what? pic.twitter.com/MAlMTnCmqm

— Alex Krüger (@krugermacro) January 30, 2019

The Fed’s announcement of pausing its rate hike program in 2019 reinjected an interim buying sentiment in both the stock and the crypto markets. And now, with President Donald Trump ordering the Fed to print more dollars against a stable economy, it is likely that S&P and crypto would move in a positive direction – purely from the perspective of dollar’s strength.

That indeed does not correlate stocks and cryptos, for as long as they compete with each other for a place in investors’ portfolio. Any potential direct proportionality between those assets would make bitcoin, a so-called haven, less attractive to investors.

Tweet123Share302ShareSend
Davit Babayan
Davit Babayan

Davit Babayan

Davit Babayan is an Armenia-based expat balancing the academic life of a software design engineer with the experiences of a financial technology journalist. He aspires to be a full-time columnist and wants to write a book that would be called, "A Homeless Who Found Bitcoin."

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Bitcoin CDD Indicator Signals LTH Distribution As Demand Offsets Pressure

Bitcoin CDD Indicator Signals LTH Distribution As Demand Offsets Pressure

Bitcoin is currently trading in a narrow range, caught between the $113K resistance and the $110K support level. Bulls are...

Sebastian Villafuerte 4 hours ago
Little Pepe ($LILPEPE) Presale Nears Sell-Out as Meme Coin Market Eyes 100x

Little Pepe ($LILPEPE) Presale Hits $25M as Meme Coin Fans Eye 100x

Meme coins rarely stay quiet for long, and the latest craze is happening around Little Pepe ($LILPEPE). The Little Pepe...

Aaron Walker 5 hours ago
XRP whale koopgolf van $340M - instituties stappen massaal in

XRP whale koopgolf van $340M – instituties stappen massaal in

XRP schiet hoger na een opvallende koopgolf van ruim $340 miljoen door grote houders. De XRP koers staat op $3,01,...

Lars Diederiksen 5 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin

Bitcoin Above Key Trendline But Below ATH – Is The Next Rally Loading?

Godspower Owie 57 minutes ago
hyperliquid hype hypeusd

Hyperliquid (HYPE) Hits New High As Nasdaq Firm Shifts Millions Into the Token

James Halver 2 hours ago
Bitcoin

Bitcoin Price To $150,000, Ethereum At $8,000, And An Altcoin Season? Analyst Reveals When

Scott Matherson 3 hours ago

Premium Sponsors

Press Releases

  • miner

    XRP Forecast: ALL4 Mining Launches Upgraded App to Ensure...

    2 hours ago
  • První mine-to-earn meme coin PepeNode získal 900 000 $ v předprodeji – zbývá jen 7 hodin ve fázi financování

    První mine-to-earn meme coin PepeNode získal 900 000 $ v...

    5 hours ago
  • ドージコイン 今後の可能性:TradFiが注目する0.50ドルの壁とは

    ドージコイン...

    5 hours ago
  • Meme coinok visszatérnek a játékba: a Snorter Bot Token (SNORT) előértékesítése meghaladja a 3,8 millió dollárt

    Meme coinok visszatérnek a játékba: a Snorter Bot Token...

    5 hours ago
  • První mine-to-earn meme coin PepeNode získal 900 000 $ v předprodeji – zbývá jen 7 hodin ve fázi financování

    Prvi Mine-to-Earn meme coin PepeNode prikupio 900.000 $ u...

    6 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.