Bitcoin and S&P 500 Correlation Reaches Two-Year High

Bitcoin's recent performance has been impressive, hitting $66,000 on September 27, marking over 11% growth for the month. Data shows its correlation with $S&P 500 Index (.SPX.US)$ , which tracks 500 major US companies, has hit a two-year high.

Market Dynamics: Both Bitcoin and the S&P 500 have rebounded in September, with the S&P gaining nearly 4%. This growing correlation suggests that movements in the stock market could significantly influence Bitcoin's price, potentially limiting diversification for investors.

Global Liquidity Impact: Recent data indicates a surge of $1.426 trillion in global liquidity, benefiting risk assets like Bitcoin. This influx of capital may continue to impact prices as we enter October, further intertwining the dynamics of cryptocurrency and traditional markets.