Bitcoin (BTC) is usually measured in dollars. This can be seen in graphics, contributions, analyst forecasts, and news. But there’s nothing that says it must be. After all, dollars are just another unit of measure. It is a financial reference that the world has chosen or accepted for hegemony, not necessarily a virtue.
However, Bitcoin can be compared to other assets or value units. For example, for gold, usually measured in shelters or speculation cycles. If you want to evaluate the relationship between oil and energy. When a more dramatic perspective is required on Argentina’s weight. Or, what would it be to compare it to the average performance of traditional financial markets for inventory measures such as the NASDAQ or the S&P500?
And it marks a truly new milestone: May 9th this year, Bitcoin reached the highest point in history when compared to the S&P 500 (SPX), one of the most relevant inventory indexes in the world.
In the following graph, the BTC/SPY ratio is observed. Note that SPY is a BlackRock ETF that follows the S&P500 index trace. It is currently worth $565 per share.
The BTC/SPY ratio, which measures the number of units of ETFs mentioned above, is equivalent to a single Bitcoin. He reached a new historic maximum of 182.97. So, Bitcoin is currently worth almost 183 times the BlackRock ETF action following the S&P500 index. To date, no such high difference has been recorded between both values.
While this data may seem anecdotal, it actually represents a powerful indication of relative behavior between the world’s most important digital assets and the most representative thermometers of US great behavior.
To dimension this achievement, it is worth remembering that the S&P 500 includes the 500 most important companies cited in the US bag. It is the index that reflects traditional market health. These include Apple, Microsoft, Amazon, Google, Meta, Nvidia, Johnson & Johnson, Visa, and more. When the S&P 500 rises, it is usually interpreted as optimism in the market. When you get off there is uncertainty and fear.
Despite this historic biggest, it is worth clarifying BTC shows a relatively high correlation with the S&P500. As can be seen in the following graph, which measures Pearson’s index:
The latter means that Bitcoin cannot be said to have lost its correlation with the representative index of the US market. However, if the climb continues at a much larger pace than the S&P 500, it could separate the things many Bitcoiners long for.
The new record in front of the S&P500 is not explained by the relative weakness of the index. It also addresses an international context in which qualified assets are once again supported as “risk.”
First, Important advances in the commercial agreement were met this week. US President Donald Trump has announced a “historical” agreement with the UK that could be the first in a series of bilateral treaties, including negotiations with China. This type of agreement tends to improve the global economic situation and provide an appetite for more aggressive investments such as technological actions and cryptocurrency.
Second, The US Federal Reserve keeps the door open to potential interest rate cuts this year. That president, Jerome Powell, had not committed to dates or sizes, but his words were read by the market as a sign that financial hardening could be nearing its end.
This is important – as explained in Encryption Encryption – Low interest rates often benefit Bitcointhey reduce the appeal of treasure bonds, but they reduce the capital costs of investors looking for a higher return.
Together, these factors are driving a new cycle of trust in the market. This has been on the upward trend after a few weeks of pauses and revisions.
Bitcoin began a strong bullish impulse from April 10th, as seen in the next Bitcoin graph, measured in the US dollar.
Over the past 30 days, Bitcoin prices have risen by more than 33% compared to US currency. At the time of this publication, less than 10% marks a new historic maximum. This can probably be done in a few days if the macroeconomic context is useful.