Do Crypto and Stocks Move in Sync? The Research Attempting to Answer the Investors' Intriguing Question

Do Bitcoin [$BTC ] prices rise and fall in tandem with the stock market? This question has fascinated experts for years, sparking endless debates.

A recently published study by Glassnode in collaboration with Coinbase Institutional, which quickly became the talk of the town, sought to answer this question definitively.

The study revealed a low correlation of 0.11 between Bitcoin price fluctuations and the S&P 500 index. In contrast, there was a high correlation of 0.79 between Bitcoin and Ether price movements. This low correlation implies Bitcoin could serve as a balancing asset in investment portfolios during stock market declines.

Various factors influence Bitcoin's [$BTC ] price, including economic conditions, regulatory changes, and supply-demand dynamics, which differ from those affecting stock prices.

Although Bitcoin [$BTC ] has only existed for 15 years, making long-term conclusions difficult, the correlation between crypto and stocks varies over different periods, ensuring the debate remains lively among investors.