Recently, the price of Bitcoin fell from the levels of $9000 to $5000, with a sudden crash in most of the global markets.

But bitcoin and in the long run it does its own thing.

Bitcoin’s status as a safe haven and digital gold has been threatened, as its price has fallen in line with what has happened in the global stock market.

Bitcoin appears volatile and its value drops according to what is happening in the stock markets, while making investors look for greater safety and turn towards stablecoins and cash.

However, according to a new report issued by the cryptocurrency exchange Coinbase, which was published yesterday, a proposal shows things differently.

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While she acknowledges that Bitcoin is sometimes associated with traditional markets, it often goes the other way entirely.

A value of 1 indicates a fully positive correlation, and a value of -1 can indicate a completely negative correlation.

Correlation between global markets and the price of Bitcoin:

Coinbase explained it as follows:

Bitcoin’s historical correlation with the S&P 500 swings wildly between 1.00 and -1.00, which appears to be positively correlated at times and then negatively correlated at other times.

This means that Bitcoin has been largely uncorrelated with major stock market indices throughout its history.

For comparison, Coinbase found that the S&P 500 was almost always correlated with the Dow Jones Industrial Average, while Bitcoin was closely correlated with Ethereum.

But they have one thing in common now and that is increased volatility.

Queenbase went on to explain:

Measuring 10-day volatility, the S&P 500 index has recently risen to levels rivaling Bitcoin’s typical range.

The report stated that S&P 500 volatility has increased significantly in recent days, as has Bitcoin.

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After that, the stock markets had their worst day in 30 years and Bitcoin their worst day in seven years, which is not entirely surprising, according to the same report.

However, what is certain to be concluded is that the new effects caused by the spread of the Corona virus affected the global markets in general, including the Bitcoin market, until Bitcoin proves the opposite and that it is reliable in a time of crisis.

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