Bitcoin has been trying to break its close correlation with the traditional markets that have been seen in recent months.Although BTC appears to have completely decoupled from traditional assets such as equities in a shorter period of time, it is important to note that Bitcoin’s “V-shaped” recovery from its March lows is strikingly similar to that of the S&P 500 and other benchmarks. However, the data shows that Bitcoin’s decoupling from traditional assets has gained some momentum in May.This could backfire for cryptocurrency buyers in the near future as analysts believe the stock market is now entering another full-fledged uptrend.
Data show: Bitcoin breaks correlation with traditional assets
According to a recently released research report by Kraken, the US crypto exchange, Bitcoin’s correlation with traditional markets declined rapidly over the course of May.Looking at BTC’s rolling 30-day correlation with the S&P 500, Kraken notes that it dropped to its lowest level since February in late May.
“Since rising to a 1-year high of 0.93 on March 18, Bitcoin’s rolling 30-day correlation with the S&P 500 has continued to fall into May. At the end of May, the correlation fell to its lowest level since February 5 (0.08) before ending the month below its 1-year average of 0.17 at 0.13. ”