Bitcoin Finally Independent? BTC-S&P 500 Correlation Hits Zero

Keshav Verma

Last Updated: February 18, 2025 1:30 am

2 mins read

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Data shows the Correlation between Bitcoin and S&P 500 has declined to zero recently, a sign that BTC is no longer attached to the stock market.

Bitcoin Correlation To S&P 500 Has Witnessed A Plunge Recently

In a new post on X, the market intelligence platform IntoTheBlock has discussed about the trend in the Correlation between Bitcoin and S&P 500. The “Correlation” here refers to an indicator that keeps track of how tied together the prices of any two given assets are.

When the value of this metric is positive, it means the price of one of the assets is reacting to movements in the other by traveling in the same direction. The closer is the indicator to 1, the stronger is this relationship.

On the other hand, the metric being under the zero mark implies that while there is also some correlation present between the assets in this case, it’s a negative one. This suggests that the charts are moving in the opposite direction to each other. For this zone, the extreme point is -1, corresponding to the tightest relationship.

Now, here is the chart for the Correlation shared by the analytics firm, which shows the trend in the metric’s value for Bitcoin and S&P 500 over the last few months:

Bitcoin S&P 500 Correlation — Looks like the value of the metric has been going down over the last few weeks | Source: IntoTheBlock on X

As displayed in the above graph, the Correlation between Bitcoin and S&P 500 rose close to the 1 mark during January, which means the prices of the two were showing a strong positive relationship.

Since peaking at the start of this month, though, the indicator has observed a sharp downward trajectory, and its value has today come down to exactly zero. Such a value implies there is no correlation whatsoever present between the assets. In statistics, the variables are said to be independent in this scenario.

The Correlation can be a useful indicator to watch for when an investor wants to diversify their holdings. Assets that have a close relationship may not be worth investing in at the same time, but ones that have a low value of the metric can make for smart diversification options. As it is currently, the S&P 500 could provide something different to Bitcoin investors and vice versa.

“The last time we saw such a low correlation was on November 5th, 2024, just before Bitcoin soared past the 100k mark,” notes IntoTheBlock. With BTC free from the stock market once more, it’s possible that the cryptocurrency could show a big move this time as well. It only remains to be seen, however, how long the coin can stay away from the influence of traditional assets.

BTC Price

Bitcoin has continued its recent trend of consolidation during the last few days as its price is still locked around the $96,000 level.

Bitcoin Price Chart — The price of the coin seems to have been moving flat recently | Source: BTCUSDT on TradingView

Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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