The correlation between Bitcoin and the U.S. stock market is rebounding. Kaiko, a cryptocurrency research company, pointed out in this week’s weekly report that the 90-day correlation index between Bitcoin and the U.S. stock market rose to 0.17 last week, which is higher than the multi-year high recorded in March. The low is 0.01, but it is still far below the high of 0.6 in the previous bull market cycle.
We know that in early April, as general economic headwinds, including stubborn inflation data tempered interest rate cut expectations, and rising geopolitical tensions led to a deterioration in investor sentiment towards risk assets, Bitcoin on May 1 It briefly fell below $57,000, but continued to fluctuate above $60,000 for the rest of the time.
Data shows that the S&P 500 index has risen 5.47% so far in May, while Bitcoin has risen even higher during the same period, reaching 6.34%, and is currently trading at $65,201 at the time of writing. More importantly, the 90-day correlation between Bitcoin and the S&P 500 has increased significantly since April. The rebound in the correlation represents the trend of BTC in the next few months, which may become closer and closer to the US stock market.
Bitcoin spot ETF saw net inflow of US$239 million
On the other hand, regarding Bitcoin spot ETF fund flow data, according to HODL15Capital monitoring , on May 16, all spot ETFs including Grayscale had a total inflow of BTC worth US$239 million, of which BlackRock's IBIT had a total inflow of value US$94 million, Fidelity's FBTC saw an inflow of US$67 million, while Grayscale GBTC maintained net inflows for 4 consecutive days, with an inflow of US$5 million in BTC on the 16th.
According to statistics , the overall spot ETF has flowed in 10,458 BTC this week, with a current value of approximately US$683 million.
Santiment: BTC whale activity drops to year low
It is also worth noting that encryption analysis agency Santiment stated in a tweet today that whale wallets holding more than 100 Bitcoins continue to hold a large number of BTC (approximately 11.79 million), and whale activity has dropped to the lowest level in 2024. There were only 60,193 whale trades greater than $100,000 last week, and the agency said " if this number rises, it will be a bullish signal ."
