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Historically, the correlation of the price of the first cryptocurrency with Chinese stocks was much less than with American ones.
For the first time since April 2021, the correlation of Bitcoin with the Chinese CSI 300 index is higher than with the S&P 500. This was pointed out by Kaiko analysts.
S&P 500 (Standard & Poor’s 500 Index) is a stock index that reflects the dynamics of the value of the shares of the 500 largest companies by market capitalization in the US market.
CSI 300 – a stock index that includes shares of the 300 largest companies traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange.
Correlation allows you to evaluate the relationship between the behavior of various assets in the market. Kaiko experts noted that historically, the correlation of the first cryptocurrency with Chinese stocks was much lower than with US stocks.
The S&P 500 is up 9.2% since the start of the year, but Morgan Stanley has warned that companies will face lower earnings this year, driving share prices down. JPMorgan believes that due to the crisis with US government debt, the stock market may face a more serious sell-off than in 2011, when the country was also on the verge of default due to problems with public debt. Then the S&P 500 fell 17% in two weeks.
Companies from China are doing no better. The performance of the CSI 300 index was one of the worst in Asia this year – the Chinese stock market lost all the growth achieved since the beginning of 2023.
In less than five months, bitcoin has risen in price by 60% – from $16.5 thousand to $26.5 thousand. for at least two months, dropping to $25.8 thousand.
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