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S&P 500 to Bitcoin ratio tops its 200-week average for first time
The S&P 500 and Nasdaq, priced in bitcoin, have stayed above their 200-week moving averages, a break that historically capped stock rallies versus BTC since 2012.
CoinDesk reports that the S&P 500-to-bitcoin ratio has topped its 200-week average for the first time, with the S&P 500 and Nasdaq priced in BTC breaking above their 200-week moving averages for the first time since 2012.
The article says the S&P 500-to-bitcoin ratio now takes roughly 0.12 BTC to buy the index, compared with more than 300 BTC in 2012, and that the ratio has generally fallen since bitcoin began in 2010.
It adds that the ratio has recently not only crossed above the 200-week average but has held above it, and that the Nasdaq-to-BTC ratio is showing a similar first-ever crossover.
CoinDesk notes that the pattern suggests bitcoin’s outsized rally versus equities may be ending, potentially weakening bullish “store of value” arguments and forecasts that extrapolate from earlier, more easily multiplied bitcoin cycles.
Latest closeBitcoin $64,114.39 ▲0.1%|S&P 500 7,736.52 ▲1.8%|Nasdaq Comp. 26,584.99 ▲2.6%