The price of bitcoin and the indexes of the stock market could have a correlation to certain events, despite the fact that each asset has different characteristics in its operation.From the 23rd of February, both the market of cryptocurrencies as the stock has shown a bearish trend that has extended to the present. The fact that both markets have a behavior so similar is striking, since both possess features relevant to the difference.It should be noted that the market of cryptocurrencies, not regulated, never closes. This means that you can participate in the purchase or sale of bitcoins and other criptoactivos at any time and any day of the week. While the stock market, highly regulated, open only from 10:30 a.m. until 4:30 pm, Monday to Friday.
Behavior in common
In order to better understand the dynamics of the two markets, we will make a comparison between bitcoin and the Standard & Poor’s 500, also known as the S&P 500, one of the indices most representative of the current market situation.In that sense, from the noon of 7 march you notice a significant drop in the price of bitcoin, which dragged down his value in the range of USD 9.100, to USD 7.730 to the time of this writing, which represents a fall in the price of almost 17% in two days.The trend is bearish on both markets. The blue line represents BTC and yellow on the stock market index. Source: TradingView.discrete the other hand, if we analyze the index of S&P 500 in the stock market, we can see that the bearish trend was present since 5 march, when he scored the 3,120 needy, while the current date is in the range of 2.746, which represents a decline of more than 11%.De this way, when you compare the graphics of bitcoin with the S&P 500 index, in periods of one hour, it is remarkable that they have a very similar pattern. This despite the fact that the uncertainty of the market about the price of bitcoin became more noticeable between 5 and 6 march, dates in which the S&P 500 index as throwing it into a clear bearish trend.Later, during the weekend of 7 and 8 march was when it became noticeable the fall in the price of bitcoin, along with most of the altcoins on the market. Now, to this date, in the course of this march 9, the S&P 500 index and other indices leading stock market, such as the IBEX 35 of the Spanish stock market, the Dow Jones and the Euro Stooxx 50 opened in the red, showing a clear downtrend in most markets.It is as well as the bearish pattern that records the market of cryptocurrencies in the last days goes hand in hand with the situation of the stock indices. With this, the correlation becomes clear. Possibly the nervousness present in the stock market has acquired the potential to have an impact on the net volume of the market of cryptocurrencies. It will be necessary to follow closely the movements of both markets to know if this behavior is similar to plays in favor or against the price of the cryptocurrencies.