Bitcoin is seen by some experts as the digital version of gold, in short, digital gold. The reason for this is that people can take refuge in Bitcoin when the market is uncertain and it starts to fall.
The Bitcoin price was generally negatively correlated with the S & P500 graph. So when people were afraid of losing money in the market, they would buy Bitcoin and when the market took action, they would withdraw their money from Bitcoin. However, this situation began to change.
Change in Correlation
The correlation between Bitcoin and S & P500 sometimes reached negative 20, up to 30. This supported the idea that Bitcoin was literally a digital gold.
According to Digital Assets Data, Bitcoin’s ability to become this digital gold began to change gradually. Because Bitcoin’s correlation with the S & P500 has changed dramatically over the past few weeks.