Currently, the S&P 500 seems to dictate the direction of bitcoin and the overall crypto market, evident by correlations reaching new highs. Bitcoins’ 90-day correlation to the S&P 500 is currently at its highest since October 2020.

Currently, the S&P 500 seems to dictate the direction of bitcoin and the overall crypto market, evident by correlations reaching new highs. Bitcoins’ 90-day correlation to the S&P 500 is currently at its highest since October 2020.

Where BTC goes, the other major altcoins seem to follow. While ETH (+1%) and BNB (+3%) have outperformed BTC in the past seven days, the correlation is currently high. Bitcoin’s direction seems to impact the direction of altcoins, and as we’ve already mentioned – BTC’s direction appears to be affected by the broad financial markets.

Fear and uncertainty affect the market, both in crypto and traditional markets, as the market anticipates tighter monetary policies. This fearfulness leads investors to scramble for cash and safety, increasing correlations between asset classes.

The Layer-1 strength remains, with Cardano, Fantom, and Harmony being the top performers over the past seven days.