Why and how Bitcoin correlates with the stock market?Generally, correlation is a statistical relationship between several values, where a change of one value causes a similar or an opposite change of another. Bro, Bitcoin usually correlates with the stock market but hasn't always been so. BTC lived its own life, but approximately in 2020,
institutional investors came in. They brought their strategies, behavior, and money. As a result, Bitcoin's market cap knocked on the
$1 trillion's door.
Oct. 19, 2021,
the first crypto ETF from Bitcoin Strategy Fund was released on the NYSE: that may be considered a point where institutionals took over the BTC price, giving it a significant correlation.
But when the №1 crypto goes the opposite?When institutionals use it for
hedging. Bitcoin was born in the wake of the crisis as an escape from national economies. Thus, when Silicon Valley Bank crashed, a vast amount of capital was infused in $BTC —
people were scared of the possible economic collapse.
