Correlations between these assets have varied over time and often BTC has been able to ride on the greener side of things.
Yet, the market was in the middle of a tricky situation at the moment, where bearish sentiment is holding a strong position after months of being dominated by bulls.
In order to gauge market correlation in a more comprehensive manner, we have identified price action for Bitcoin and U.S dollar on a short-term and mid-term period.
As identified in the chart, from 23rd December 2020 to 21st June 2021, Bitcoin has risen by 40% during a 180-day period.
The study utilized the Bitcoin Sentiment Index or BSI which incorporated various speculative values such as tweets, search volumes, google news and anything which creates hype or technically, a bubble.
Although it might sound harsh to term Bitcoin as speculative in 2021, considering only 2% of the global population utilize it, it is not technically false.
Disclaimer: AMBCrypto’s content is meant to be informational in nature and should not be interpreted as investment advice.