Arcane Research pointed to an increase in bitcoin's correlation with the S&P 500
Heightened geopolitical tensions have led to increased correlation between the first cryptocurrency and the U.S. stock index S & P 500. This is stated in an analytical report by Arcane Research.
According to the researchers' observations, the 90-day correlation between BTC and the "barometer of the U.S. economy" reached its highest level since October 2020. By contrast, bitcoin's statistical correlation with gold has turned negative.
"Gold acts as a low-risk asset during this period of significant geopolitical uncertainty," the experts shared.
Arcane Research also noted the return of the cryptocurrency "fear and greed index" to around the 20 mark, which indicates the prevalence of panic sentiment among market participants.
