Bitcoin and SPX Correlation Strengthens Ahead of FOMC Meeting

Bitcoin's (BTC) price has recovered to the $61,000 level as the S&P 500 (SPX) reaches a new all-time high. The rising correlation between Bitcoin and major US stocks suggests that the upcoming FOMC meeting and interest rate cut announcement could impact both the stock and crypto markets.

S&P 500 Likely to Experience Short-term Bearishness After Rate Cut

The S&P 500 index, which represents the overall US market, is currently in an uptrend. However, historical data shows that the SPX index has experienced short-term drops 60% of the time in the 1-month period following a rate cut by the Federal Reserve.

Bitcoin's Price Could Retrace to $50K Ahead of October

Given the high 0.88 correlation coefficient between Bitcoin and the S&P 500, the potential short-term bearishness in the stock market could push Bitcoin's price back to the $50,000 level before October, as traders position themselves ahead of the FOMC meeting and rate cut announcement.

Source: https://cointelegraph.com/news/why-stocks-bitcoin-price-back-50k-october

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