According to the latest report released by analyst firm Arcane Research, worsening geopolitical tensions have led to an increase in the correlation between Bitcoin and the S&P 500 US stock index.
The company’s analysts have concluded that the 90-day correlation between BTC and the S&P 500 has hit its highest level since October 2020, while the statistical relationship between Bitcoin and gold, on the contrary, has turned negative.
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The company's experts said:
"Gold is acting as a low-risk asset during this period of significant geopolitical uncertainty."
According to Arcane Research, the crypto's "fear and greed index" has returned to levels around 20, indicating the prevalence of panic among market participants.
The spot volume of Bitcoin trading on centralized exchanges has plummeted to the levels of early December 2020.
We have recently reported Glassnode analysts have highlighted the risks of a continued fall in the price of Bitcoin.