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This study examines the correlation between Bitcoin and the S&P 500 from 2020 to 2024. The analysis reveals significant shifts in their relationship over this period, influenced by economic events and market trends.
In 2020, the correlation increased due to the COVID-19 pandemic, as both assets reacted to global financial uncertainty. By 2021, the correlation remained strong amid inflationary pressures and institutional adoption of Bitcoin.
During 2022-2023, the correlation fluctuated with regulatory changes and macroeconomic factors, while 2024 data shows a potential decoupling as Bitcoin matures. This study provides insights for investors on portfolio diversification strategies. |
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