--- title: "Hedge attributes questioned! The correlation between Bitcoin and U.S. stocks has risen to the highest level this year" type: "News" locale: "en" url: "https://longbridge.com/en/news/278179673.md" description: "As the situation in the Middle East escalates, the correlation between Bitcoin and the U.S. stock market has risen to its highest level of the year, reaching 0.74, indicating that it behaves more like a risk asset rather than a safe haven. The S&P 500 index fell by more than 1.3%, while Bitcoin briefly dropped by about 5%. Analysts point out that Bitcoin's high correlation contrasts with its original safe-haven positioning, and the market turmoil stems from multiple factors, including weak employment data and the Middle East conflict. Despite facing pressure, some investors remain cautiously optimistic about the market outlook" datetime: "2026-03-06T23:18:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/278179673.md) - [en](https://longbridge.com/en/news/278179673.md) - [zh-HK](https://longbridge.com/zh-HK/news/278179673.md) --- # Hedge attributes questioned! The correlation between Bitcoin and U.S. stocks has risen to the highest level this year As the situation in the Middle East escalates, causing fluctuations in global markets, the movements of Bitcoin and the U.S. stock market have once again become highly synchronized, a phenomenon that has raised concerns among many cryptocurrency investors. The latest data shows that the correlation between Bitcoin and the S&P 500 index has risen to its highest level of the year, indicating that this digital asset is behaving more like a risk asset rather than a safe-haven tool in the current environment. According to Zhitong Finance APP, the 30-day correlation coefficient between Bitcoin and the S&P 500 index has risen to 0.74, the highest level this year. As geopolitical uncertainties from the U.S.-Israel-Iran conflict intensify, the U.S. stock market has recently come under pressure, and digital assets have also retreated in tandem. On Friday, the S&P 500 index fell more than 1.3%, recording its worst weekly performance since November of last year, while Bitcoin briefly dropped about 5% during the session. Currently, Bitcoin is still in a multi-month correction. The cryptocurrency has significantly retreated from its previous highs, with the price now around $68,000, down nearly half from its peak. Meanwhile, market trading signals indicate insufficient buying interest, further exacerbating concerns about its short-term trajectory. Analyst Athanasios Psarofagis noted that the rising correlation between Bitcoin and the stock market is in stark contrast to its original positioning. "In times of increased market volatility, Bitcoin should exhibit lower correlation, not higher," he pointed out, adding that historically, Bitcoin has occasionally risen during periods of market turmoil, making the current trend surprising to some investors. ![WeChat Screenshot_20260306172554.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260307/1772835967515220.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Bitcoin was initially promoted as a decentralized financial asset designed to provide investors with a store of value independent of the traditional financial system. However, in recent years, with the influx of institutional funds and the increasing ties between the cryptocurrency market and the traditional financial system, Bitcoin's price movements have become more susceptible to macro risk sentiment. Recent market turmoil has primarily stemmed from multiple overlapping factors, including weak U.S. employment data, escalating conflicts in the Middle East, and inflation concerns driven by rising oil prices. Additionally, uncertainty regarding U.S. cryptocurrency regulatory policies has added extra pressure to the market. Despite this, some cryptocurrency investors remain cautiously optimistic about the future. Noelle Acheson, a contributor to Crypto is Macro Now, stated that the correlation between Bitcoin and the stock market may change again in the future. 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