According to the latest weekly report from Kaiko, the correlation index between Bitcoin and the US stock market rose to 0.17 last week, showing a significant rebound since early April. On the other hand, Santiment stated that Bitcoin whale activity has reached its lowest level since 2024, and if this data increases, it will be a bullish signal.
(Bitcoin Bull Market Logic Quietly Changes, How Should Investors Face It?)
(Background information: US April core CPI hits three-year low! Bitcoin breaks through $66,000, Ethereum reaches $3,000, Fed rate cut strengthens confidence)
The correlation between Bitcoin and the US stock market is rebounding, as noted in this week’s report by cryptocurrency research firm Kaiko. The 90-day correlation index between Bitcoin and the US stock market rose to 0.17 last week, higher than the multi-year low of 0.01 recorded in March, but still far below the high point of 0.6 during the previous bull market cycle.
We know that in early April, with the overall economic headwinds, including stubborn inflation data dampening rate cut expectations, and escalating geopolitical tensions, investor sentiment towards risk assets deteriorated. Against this backdrop, Bitcoin briefly fell below $57,000 on May 1st and has since been oscillating above $60,000.
Data shows that the S&P 500 index has risen 5.47% in the past month, while Bitcoin has seen an even higher increase of 6.34%, reaching $65,201 at the time of writing. More importantly, the 90-day correlation between Bitcoin and the S&P 500 has significantly increased since April, suggesting that BTC’s future trend may become increasingly closer to that of the US stock market.
With US inflation data cooling and hopes for rate cuts igniting, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite Index have all hit new all-time highs this week.
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The orange line represents the 90-day correlation index between BTC and the US stock market S&P 500. Source: Kaiko
Bitcoin spot ETF net inflow of $239 million
On the other hand, regarding the data of Bitcoin spot ETF fund flows, according to monitoring by HODL15Capital, on May 16th, all spot ETFs, including Grayscale, collectively had an inflow of $239 million worth of BTC. Among them, BlackRock’s IBIT had an inflow of $94 million, Fidelity’s FBTC had an inflow of $67 million, and Grayscale’s GBTC maintained a net inflow for 4 consecutive days, with an inflow of $5 million worth of BTC on the 16th.
According to statistics, a total of 10,458 BTC has flowed into spot ETFs this week, with a current value of approximately $683 million.
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Source:
@santimentfeed
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