The price slide for Bitcoin is due to the situation on the global market

Experts are noting surprising similarities between crypto and market routes this week.

Until now, Bitcoin has been a toy for speculators and risk traders, rather than a widespread investment or real currency. It is shunned by banks and banned by governments.

However, it is still possible that its decline on Monday triggered a big market sell-off as investors sold assets to offset crypto losses. There is an invisible connection between digital currency instability and something else that until now seemed insignificant.

The last 24 hours have shown surprising similarities between the behavior of Bitcoin and the world's more developed financial markets. A Bitcoin price chart plotted against S&P 500 E-Mini futures shows similar performance for both.

The adjustments are similar, with both currencies returning to levels last seen in November. Regression analysis over the past two years shows a correlation of 0.7 between the price of Bitcoin and the S&P 500 index, with 0 being the weakest correlation and 1 the strongest. Over the course of a year, the correlation is 0.8.

The connection between Bitcoin and stock markets is quite surprising, given the fact that Bitcoin is just a piece of code.

But we shouldn't ignore its place in investors' portfolios, as well as in psychology. Yes, it's definitely not Wall Street, but late last year Bitcoin became a real financial instrument. At the same time, it reached a record price of almost $20,000 when futures trading began.

A large number of companies believed the bubble rumors, and Bitcoin Investment Trust showed its net profit from an increase in net asset value exceeding 50%. Hedge fund managers have revealed themselves as crypto experts. Brokers kept clients constantly updated on the status of Bitcoin, as if it were oil, gold or the euro.

So, instead of believing that Bitcoin might fade into oblivion and never be heard from again, you can be sure that it will “shoot up” in another area. 

Losses in investors' cryptocurrency portfolios following Bitcoin's slide from $12,000 to less than $8,000 in a week have likely led to sales of other assets to offset the losses, according to one top trader.

We can't help but note that the Bitcoin speculation topic is a dark horse... But the current situation is certainly unlike most hedging against traditional financial markets.

According to https://www.bloomberg.com