"Bitcoin (BTC)·S&P500 Correlation Recovery Due to Macro Risks"

Andre Dragosch, Head of Research at Bitwise Europe, stated in an interview with CoinDesk on the 7th (local time) that "the recent synchronization movement between Bitcoin (BTC) prices and the S&P500 index is recovering again," and "the correlation coefficient between the two indices recorded 0.88 based on the recent 20-day moving average."

The correlation coefficient is measured between +1 and -1, with a value closer to -1 indicating a perfect negative correlation (inverse correlation) and a value closer to +1 indicating a perfect positive correlation (synchronization).

He continued, "According to the dot plot released by the Federal Reserve (Fed) last December, two rate cuts are expected in 2025," adding, "This is fewer than the four cuts anticipated last September."

Additionally, he explained, "This shift in the Fed's stance may have encouraged the synchronization of BTC and the S&P500," and "while the Dollar Index (DXY) has risen by 5%, putting pressure on risk assets, Bitcoin has relatively withstood well."

Finally, he added, "However, the deterioration of various macroeconomic conditions could pose short-term risks to Bitcoin," especially if the synchronization with the S&P500 deepens.