Digital currencies were never meant to be an asset correlated to anything or controlled by any centralized authority but it seems there is some evidence for having Bitcoin correlated with things like equities and stocks. Like Bitcoin show a trend when certain countries market open. Like South Korean stock market or London Stock exchange: these move Bitcoin when open. Another thing that moves Bitcoin is stock index. After stock market starts to capitalize, the blockchain sets off in a new direction. It would be funny and unrealistic if we don’t correlate crypto market with other markets.
CEO of cryp tocurrency fund of hedge funds Joe DiPasquale suggest that sentiments play a key role in investments. He add, Investors enter market when they are optimistic, traditional or digital emphasized. Any huge shift in the market is usually driven by events that motivate investors to invest or withdraw. Crypto market is extremely volatile and any slight mode of market can cause whales to intervene.
Recently Blockforce Capital compile data to investigate the correlation between the two markets : crypto and stock market. The linkage between these two seem really weal from the border lense. The analysis which looked at Bitcoin and the standard, Poor’s 500 Index from Jan 2015 to Oct 2018 found that correlation during this period was never substantial. Blockforce CEO Eric Ervin said
“Historically, the correlation between the S&P 500 and Bitcoin has been insignificant. Although correlation values between the two asset classes has 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, While most people talk about how Bitcoin is not correlated to the S&P 500, it’s important to recognize that not being correlated is not the same as being negatively correlated.”