Ten percent — that’s how much the Nasdaq has dropped in just one week. The S&P 500 is close behind, down 8.80%, with the Dow falling 7.60% over the same period.
With all this volatility — as the VIX hit a high of 45.60 — Bitcoin, as of April 4th, is up over 1% on the day.
Weird, right? When it comes to ‘risk-on’ assets, Bitcoin has typically been viewed as the riskiest — but over the last few weeks, we’ve seen a correlation that’s anything but typical.
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Bitcoin’s Historical Behavior and Correlation with Other Asset Classes
From 2012 through 2023, Bitcoin was either the top or bottom performing asset in every calendar year — never in the middle — per WisdomTree’s March 2024 report, “Dynamic Correlations: Bitcoin vs. Other Asset Classes.” In nine of those years, it outperformed everything else. But in years like 2018 and 2022, it dropped over 60%, showing how extreme its swings can be.
What’s even more interesting is Bitcoin’s low and constantly shifting correlation to traditional assets. WisdomTree’s data shows its 50-day rolling correlation to the S&P 500 has typically ranged between -0.1 to 0.2, sometimes spiking, but never staying consistent. This suggests that Bitcoin isn’t reliably tied to equities and can act differently in times of stress — exactly like what we’re seeing now.
“The hardest single thing to understand about correlation is that it is always shifting.” – WisdomTree, 2024
So while the broader markets are bleeding, Bitcoin’s resilience today could be a glimpse into its evolving role — possibly as a diversifier when traditional assets move in tandem.
Trending: It’s no wonder Jeff Bezos holds over $250 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.
Bitcoin and the S&P 500: Comparing 1-Year Performance Trends
When it comes to the past year’s performance as of Friday, Bitcoin is up roughly 25%, while the S&P 500 is down 7%. This means that if you had bought Bitcoin a year ago today, you’d be up, while the opposite is true for the S&P 500.
Source: Godel Terminal (BTC v SPX – Year % Change)
While this data is not complex and doesn’t delve into a more in-depth technical view, it’s important to understand. The common view would be to sell Bitcoin during these downturns, as it has been considered the riskiest asset out there, but this simple data set shows otherwise in recent times.
