Bitcoin tends to bottom out at least six weeks before the S&P 500 Index.
Delphi Digital shows that cryptocurrencies are riskier assets than stocks.
Bitcoin (BTC), the dominant cryptocurrency in the global crypto market, typically lags significant stock market bottoms. According to Delphi Digital, a digital assets research platform, Bitcoin tends to bottom out at least six weeks before the Standard & Poor’s 500 Index (S&P 500 Index), a stock market index tracker.
According to a 2023 preview issued to clients on Wednesday by Delphi’s strategists, BTC has historically peaked 48 days and bottomed 10 days before the SPX (S&P 500).
The preview reveals that:
Over the past five years, all major price reversals in BTC have preceded those in major equity indices.
It demonstrates that investors consider Bitcoin and other cryptocurrencies as riskier assets than stocks.
Will Bitcoin (BTC) Lead the S&P 500?
The macroeconomic environment and corporate fundamentals have a direct impact on stock prices, but the cryptocurrency market has not yet established solid ties to the global economy. Up until now, it has been evident that digital assets are narrative-driven, with valuations mostly based on the rate of expansion of the quantity of fiat money and variables like the inflation rate that affect Federal Reserve policy.
Delphi’s strategists added:
The crypto market is one of the purest bets on global liquidity expansion and currency debasement. Not only is it influenced by macro factors, but when market conditions change, it’s often the first to react.
Bitcoin reached its all-time high on November 10, 2021, by registering $68,789.63, according to CoinMarketCap (CMC). Also, S&P 500’s reached its peak at 4,818, on January 4.
Moreover, Bitcoin is currently trading around $16,834.92 with a one-day trading volume of $14,046,385,399. BTC has decreased by nearly 0.14% during the last 24 hours, as per CMC. Furtherly, the current value of the S&P 500 is 3,878.44. It has increased by 1.49% in the past 24 hours.