Bitcoin vs S&P 500
Bitcoin closed at $78,126 on April 24, 2026, down 38 percent from its $126,198 October 2025 peak. SPY was at $708, within 1 percent of its all-time high of $712.
Also known as: Bitcoin (BTCUSD, XBT) · S&P 500 ETF (SPY) (ETF_SPY, S&P 500, SPX, SP500)
Why This Comparison Matters
Bitcoin closed at $78,126 on April 24, 2026, down 38 percent from its $126,198 October 2025 peak. SPY was at $708, within 1 percent of its all-time high of $712. The 90-day rolling correlation between BTC and SPY has averaged 0.45 over 2024 to 2026, up from 0.20 over 2018 to 2023. Three structural shifts have raised the correlation: the January 2024 spot ETF approval that institutionalized BTC ownership, the broader macro liquidity regime that drives both assets, and the increasing share of BTC held by institutional investors with cross-asset rebalancing rules. The pair captures whether crypto is functioning as an alternative asset (lower correlation) or a high-beta risk asset (higher correlation).
What Bitcoin and SPY Capture
Bitcoin is the original cryptocurrency with a hard-capped supply of 21 million coins (about 19.85 million already mined as of April 2026). The asset trades 24 hours a day across roughly 50 jurisdictional markets. Total market capitalization in April 2026 is approximately $1.55 trillion at the $78,000 spot price.
SPY tracks the S&P 500, holding roughly 500 large US companies with combined market capitalization of approximately $50 trillion. SPY itself has $560 billion AUM, expense ratio 0.0945 percent. The two assets represent fundamentally different economic claims: bitcoin is a non-yielding scarce digital commodity, while SPY represents fractional ownership in productive US businesses with earnings growth and dividend yields. Despite the different fundamental natures, the two have become increasingly correlated in price action since 2020.
The Pre-2020 Low Correlation Era
From 2013 to 2019, bitcoin's 90-day rolling correlation with SPY averaged near zero, with monthly readings ranging from -0.4 to 0.4. The asset functioned more like a niche alternative than a risk asset. Bitcoin had its own cycle dynamics (halvings, ICO bubbles, regulatory waves) that produced uncorrelated returns relative to traditional markets.
The 2017 to 2018 cycle illustrated the disconnection: Bitcoin rose from $1,000 to $19,800 in 2017 (1,880 percent), while SPY rose 22 percent. Bitcoin then fell 84 percent through 2018 while SPY fell only 4 percent. The decoupling reflected bitcoin's primarily retail and crypto-native investor base, with limited overlap to traditional equity holders. The asset class was effectively walled off from broader macro dynamics, which kept correlations low and made bitcoin attractive as a portfolio diversifier.
The 2020 Inflection
The COVID period broke the historical low-correlation pattern. From March 2020 through 2021, bitcoin's 90-day rolling correlation with SPY rose to 0.5 to 0.7. Both assets responded together to the Fed's zero-rate policy, the fiscal stimulus that boosted retail investor capital, and the broader risk-on regime that lifted long-duration assets across the board.
The drivers of the inflection were structural. First, retail brokerage platforms (Robinhood, Coinbase, Cash App) made bitcoin easily accessible alongside equities, blurring the holder-base distinction. Second, MicroStrategy's August 2020 corporate treasury allocation of $250 million in bitcoin, followed by Tesla's February 2021 $1.5 billion allocation, signaled that public companies would treat bitcoin as a treasury reserve asset. Third, the SEC approved the first US bitcoin futures ETF in October 2021. The combination produced the highest sustained BTC-SPY correlation since the asset class began.
Conditional Forward Response (Tail Events)
How S&P 500 ETF (SPY) has historically behaved in the 5 sessions following a top-decile or bottom-decile daily move in Bitcoin. Computed from 1,279 aligned daily observations ending .
Following these triggers, S&P 500 ETF (SPY) rises 0.03% on average over the next 5 sessions, versus an unconditional baseline of +0.24%. 128 qualifying events; S&P 500 ETF (SPY) closed positive in 58% of them.
90-Day Statistics
Explore Each Metric
Related Scenarios & Forecasts
Get daily macro analysis comparing key metrics delivered to your inbox. Stay ahead of market-moving divergences.
Frequently Asked Questions
What is the current BTC-SPY correlation?+
The 90-day rolling correlation between bitcoin and SPY has averaged 0.45 over 2024 to 2026, up from 0.20 over 2018 to 2023. The 30-day rolling correlation in April 2026 is closer to 0.4, slightly below the multi-year average. The correlation rose structurally after January 2024 spot ETF approval institutionalized bitcoin ownership and after the broader macro liquidity regime made both assets more responsive to Fed policy. The historical pre-2020 correlation averaged near zero, with monthly readings ranging from -0.4 to 0.4.
Has bitcoin lost its diversification value?+
Largely yes for shorter horizons. The 2024 to 2026 average correlation of 0.45 means BTC adds beta to portfolios rather than purely diversifying. The pre-2020 framework of allocating 1 to 5 percent BTC for diversification worked when correlation averaged near zero. The post-2024 framework treats BTC more like high-beta tech: a 5 percent BTC allocation produces approximately the same volatility contribution as a 12 to 15 percent QQQ allocation. The framework choice matters for portfolio construction. Long-horizon (5+ years) holdings still benefit from BTC's historical outperformance over equities, but short-horizon volatility profile has changed.
Why has the correlation risen?+
Three structural drivers. First, retail brokerage integration: Robinhood, Coinbase, Cash App, and others made bitcoin accessible alongside equities, blurring the historic holder-base distinction. Second, corporate treasury adoption: MicroStrategy (August 2020 $250M), Tesla (February 2021 $1.5B), Block, and others signaled that public companies would treat bitcoin as a treasury reserve. Third, January 2024 spot ETF approval: cumulative inflows of $50 billion by Q1 2026 brought institutional investors with cross-asset rebalancing rules into BTC, producing synchronized flows. The combined effect raised the BTC-SPY correlation from near-zero pre-2020 to 0.45 post-2024.
Related Comparisons
Explore Across Convex
Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.