Data analyzed by CryptoSlate showed a degree of relationship between Bitcoin tops and bottoms in relation to those of gold, the S&P 500, and the S&P Case-Shiller Home Price Index (CSHPI).
Bitcoin versus others
The chart below interlays the price of BTC, gold, the S&P 500, and CSHPI. It was noted that when Bitcoin bottomed during the covid crash in March 2020, the price of the other three assets/indices also bottomed soon after, except for CSHPI.
Examining the tops on an expanded timeframe also shows mixed results for BTC as a leading indicator. Bitcoin topped $69,000 in November 2021, the S&P 500 followed by the year-end, followed by the CSHPI, which peaked in January 2022.
However, gold had topped at $2,070 around August 2020, some 15 months prior to BTC topping.
In summary, the data points to a high degree of bottoming correlation between Bitcoin, gold, and the S&P 500, but not U.S. property. The covid period was a black swan event that would have exerted sell pressure among liquid asset classes.
Regarding topping, Bitcoin displayed a strong degree of correlation with the S&P 500 and the CSHPI, but not with gold.
The SEC vs. Paxos: A deep dive into the implications of the lawsuit and its effects on stablecoins
The SEC’s notice to Paxos to stop minting BUSD could have longstanding implications on the crypto market. CryptoSlate’s new report explores the recent and potential consequences of enforcement action against Paxos.