Bitcoin's Pullback with SP500 Drop Brought Historical Data to Mind! - Coin Newsletter

The S&P 500 index lost 10% of its value and entered correction territory, while the 30% drop in the price of Bitcoin (BTC) started to remind investors of past scenarios.

The S&P 500, one of the most important U.S. stock indexes, fell 10% from its peak and entered the technical correction (correction) zone. CoinDesk analyst James Van Straten analysed how the index's past major corrections are linked to the price of Bitcoin.

Over the past 15 years, the S&P 500 has experienced four major corrections. After the 2008 crisis, the index lost about 60 percent of its value. In 2019, following the S&P 500, which fell 20%, Bitcoin retreated 85% from its all-time high. Similarly, the S&P 500 fell 40% in March 2020 due to Covid-19, and Bitcoin lost 60% of its value, worrying investors**. In the most recent **history, while there was a 25 percent decline in 2022, Bitcoin bottomed out with a one-month delay and reduced its price to the level of 15 thousand dollars.

The relationship between Bitcoin and stock markets

The current 10% correction in the S&P 500 has led to a 30% drop in the price of Bitcoin. However, according to the analyst, this is not surprising for the cryptocurrency market. While similar 30% declines have occurred many times in bull markets in the past, the most recent example was in August 2024 during the Japanese yen-induced carry trade crisis.**

Analyst Van Straten emphasizes that this correction has not yet turned into a bear market, and states that investors should look at historical data before panicking. Historically, 10% declines in the S&P 500 have been considered normal, while Bitcoin has moved more sharply over similar periods.**