Bitcoin risks 50% drop as BTC’s positive correlation with US stocks grows
Bitcoin’s 20-week rolling correlation with the S&P 500 has turned positive, a signal that has historically preceded major BTC price declines.
Bitcoin (BTC) erased much of its US-Iran war-driven gains this week, moving back in sync with the broader downtrend in risk assets, mainly US equities.
Key takeaways:
Bitcoin’s positive flip in S&P 500 correlation has historically preceded average declines of around 50% since 2018.