Bitcoin risks 50% drop as BTC's positive correlation with US stocks grows

Bitcoin’s 20-week rolling correlation with the S&P 500 has turned positive, a signal that has historically preceded major BTC price declines.

Bitcoin (BTC) erased much of its US-Iran war-driven gains this week, moving back in sync with the broader downtrend in risk assets, mainly US equities.

Key takeaways:

Bitcoin’s positive flip in S&P 500 correlation has historically preceded average declines of around 50% since 2018.

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