Bitcoin (BTC) continues to show its volatility, trading in a narrow range between $30,000 – $35,000.

At press time, Bitcoin is down 3.50% at $33,142 with a market capitalization of $623 billion.

With Bitcoin trading still under pressure, the coin has now entered a negative correlation with the S&P 500 Index.

This means that there is a sharp difference between the largest cryptocurrency in the world and the largest stock index in terms of performance.

This is the first time in 2021 that the Bitcoin correlation has turned negative.

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In the first six months of 2021, Bitcoin and the S&P 500 were highly correlated as both continued their journey north by reaching all-time highs and peaks for a few weeks, according to a report Kaiko.

But bitcoin has fallen and corrected more than 45% in the past two months while the S&P 500 continues to rise.

Yesterday, Monday, the S&P 500 rose further, achieving a record close at 4,384 levels year-to-date, meaning the S&P 500 made a solid return of 18.48%.

Bitcoin’s correlation with gold is also still negative, knowing that the latter has jumped 20% over the past month.

The difference in the movement and performance of bitcoin with the S&P 500 index and gold is considered positive and contributes to demonstrating the advantage of portfolio diversification to the investors who wish to do so.

Average Return Of Bitcoin In 6 Months Turns Negative:

According to Santiment, the average 6-month bitcoin trading returns are negative.

With Bitcoin repeatedly moving towards lower lows, the decline affects investor confidence and increases uncertainty and “FUD”.

Santiment points out that based on historical trends, this is the right moment to make the move for long-term investors by keeping their negative biases aside.

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According to the same platform, Bitcoin appears to be undervalued at this price point.

On the other hand, the bitcoin mining hash rate showed a strong bounce moving back above 100 exhash/sec.

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This is a healthy sign and indicates that miners are back on track after a major crackdown launched by China last month.

Currently Bitcoin (BTC) needs to convincingly break the $35,000 resistance and hold it if it is to start the next stage of the rally.

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