Why is Bitcoin’s increasing correlation with the S&P 500 important for understanding its behavior during traditional market rallies?
Pourquoi est-ce la bonne réponse?
This is correct because rising correlation means Bitcoin’s price action is increasingly tied to equity markets. When stocks rally, risk appetite grows and capital flows into crypto, lifting Bitcoin prices. Conversely, during equity sell-offs, Bitcoin can drop in sync. Understanding this correlation helps investors anticipate Bitcoin behavior based on stock market moves and manage portfolio diversification and risk.
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