Bitcoin

April

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  Neither the author, Ruholamin Haqshanas, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions. 
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<p class="has-drop-cap">Crypto investors <a aria-label="experienced over $1 billion in liquidations (opens in a new tab)" href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">experienced over $1 billion in liquidations</a> over the past 24 hours amid a substantial spike in market volatility. The upheaval sent Bitcoin’s price tumbling to as low as $25,600, while the cryptocurrency’s <a aria-label="correlation with equities recorded a new high (opens in a new tab)" href="https://app.intotheblock.com/insights/markets/indices/western" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">correlation with equities recorded a new high</a>.&nbsp;</p> 
<h3 id="okx-sees-the-highest-liquidations-among-crypto-exchanges">OKX Sees the Highest Liquidations Among Crypto Exchanges</h3> 
<p>Bitcoin printed a new 1-month low on Friday as crypto markets witnessed $1.04 billion in liquidations due to extremely high volatility. The unfavorable market conditions drove BTC on a turbulent drive, pushing its price as low as $25,600 in the last 24 hours.</p> 
<p>The world’s largest cryptocurrency recovered in the coming hours and stood at $26,451 at the time of writing. Out of more than $1 billion in liquidations, $836 million represented long positions while $205 million were shorts, CoinGlass data showed.&nbsp;</p> 
<p>Among crypto exchanges, OKX accounted for the most significant portion of liquidations over this period, registering $308 million in liquidated long positions. Meanwhile, Binance accounted for $189 million for liquidated positions.&nbsp;</p> 
<p>The crypto market downturn comes amid growing commotion in broader financial markets, triggered partly by the <a aria-label="collapse of Chinese property giant Evergrande (opens in a new tab)" href="https://www.bbc.com/news/business-66540785" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">collapse of Chinese property giant Evergrande</a>. The company filed for bankruptcy protection on Thursday in a New York court after becoming the world’s most heavily indebted property developer, with an estimated debt of more than $300 billion.&nbsp;</p> 
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<h3 id="btc-and-sp-500-correlation-at-4-month-high">BTC and S&amp;P 500 Correlation at 4-Month High</h3> 
<p>Amidst Bitcoin’s steep drop, the maiden cryptocurrency’s correlation with the S&amp;P 500 stock index rose to 0.61 from -0.72 at the beginning of August. According to IntoTheBlock data, this is the highest correlation between BTC and equities since April 2023.</p> 
<p>This refers to the statistical relationship between the price movements of Bitcoin and stocks. Notably, a positive correlation suggests that when the S&amp;P 500 goes up or down, Bitcoin tends to follow a similar pattern, while a negative correlation implies that their price movements diverge.</p> 
<p>BTC experienced flat price action over the past month, <a href="https://tokenist.com/bitcoin-touches-30k-as-microsoft-announces-web3-partnership/" rel="noopener noreferrer nofollow" class="deco-link">flirting with the $30,000 mark</a> multiple times. However, the largest coin and the broader crypto market are now seeing increased volatility, possibly due to fears that <a href="https://tokenist.com/chances-of-a-25-bps-hike-at-98-9-as-fomc-decision-due-today/" class="deco-link" rel="noopener noreferrer nofollow">interest rates</a> may remain higher for a bit longer, in contrast to <a href="https://tokenist.com/cme-data-shows-a-90-5-probability-of-fed-pausing-after-july-cpi-print/" rel="noopener noreferrer nofollow" class="deco-link">initial expectations</a>.</p> 
<p>Meanwhile, S&amp;P 500 has also been trending down lately, losing more than 4% over the past month. Year-to-date, the performance of the benchmark equity index remains positive, soaring nearly 15% since January 1.&nbsp;</p> 
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<p><em><strong>Do you think crypto prices will deteriorate further if fears of more interest rate hikes come to fruition? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/bitcoins-correlation-with-sp-500-grows-as-crypto-market-sees-1b-in-liquidations/">Bitcoin’s Correlation with S&amp;P 500 Grows as Crypto Market Sees $1B+ in Liquidations</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Bitcoin’s Correlation with S&P 500 Grows as Crypto Market Sees $1B+ in Liquidations

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