Bitcoin’s rising correlation with stocks debunks haven narrative

Stocks were jolted Friday following news President Donald Trump tested positive for coronavirus. But in a move counter to the often-touted narrative that the dominant cryptocurrency acts as a haven, Bitcoin also retreated.

That’s because the correlation between Bitcoin and the benchmark S&P 500 stock index remains positive, meaning that its price movements are consistent with those in equity markets. In addition, Bitcoin’s 14-day Relative Strength Index (RSI) reading clocks in at 45, while the equity index’s is at 51. That suggests the cryptocurrency’s decline has been more severe than the overall stock market drop.

The S&P 500 has lost 6% since its September high, while Bitcoin’s down about 15% since its mid-August peak.