Is There a Crypto More Correlated with the S&P 500 Than Bitcoin? Decoding the Crypto-Stock Market Connection
For years, Bitcoin was touted as an uncorrelated asset, a safe haven from traditional markets. But the narrative is shifting. While many still believe Bitcoin price movements don\'t correlate with the S&P 500, the data tells a different story. In fact, the relationship between Bitcoin and the stock market, particularly the S&P 500, has become increasingly intertwined. But, is there a crypto that shares a higher correlation with the S&P 500 than Bitcoin?
Bitcoin\'s Evolving Correlation with the S&P 500
Recent analysis indicates Bitcoin behaves more like an amplified version of the S&P 500 index. The most common narrative pushed by cryptocurrency insiders used to be that bitcoin price movements don’t correlate with the S&P 500. Recent performance data demonstrates this, as Bitcoin and the S&P 500 seem to move together, but why? Explore the data behind crypto-stock market correlation and what it means for traders.
Top CryptoQuant analyst Axel Adler recently highlighted Bitcoin’s renewed strong correlation with the S&P 500 index, which currently stands at 83%. This connection underscores how BTC is becoming increasingly influenced by traditional market forces. According to a CoinDesk report and data from Blockchain Center, Bitcoin started to become correlated to the S&P 500 in the last quarter of 2025. The 90-day rolling correlations confirm this trend.
Understanding the Factors Driving the Correlation
So, why is Bitcoin increasingly mirroring the S&P 500? The increasing interest in crypto among investors drives demand for both BTC and S&P 500 stocks, thus the correlation with stocks rises. The growing integration of digital assets into mainstream finance is a significant factor. Bitcoin negatively correlated with the DXY index and gold, while its correlation with the S&P 500 was low at 0.11 at one point. This suggests that Bitcoin’s price movements are subject to change and can be impacted by various factors.
Divergences and Implications for Traders
Despite the strong correlation, divergences can and do occur. The Bitcoin (BTC) and S&P 500 (SPX) prices have been positively correlated with each other since February. Divergences between BTC and SPX tend to happen on the short term. Analyzing these divergences can provide valuable insights for traders, helping them identify potential opportunities and manage risk.
Beyond Bitcoin: Are Other Cryptos More Correlated?
While Bitcoin\'s correlation with the S&P 500 is significant, it raises the question: aint bitcoin this crypto shares a higher correlation with the sp 500? While specific data on other cryptocurrencies exceeding Bitcoin\'s correlation is constantly evolving, it\'s crucial to monitor altcoin performance and conduct independent research. Factors like market capitalization, institutional adoption, and specific project characteristics can influence a crypto\'s correlation with the stock market.
Ultimately, understanding the relationship between cryptocurrency and the S&P 500 is essential for informed decision-making in today\'s dynamic market. Whether it\'s Bitcoin or another crypto, staying informed about these correlations is key to navigating the world of digital assets.