Bitcoin And S&P Decline Together, But Data Predicts A Turnaround

Bitcoin is not the only one that has suffered. Investors are becoming concerned as the flagship cryptocurrency has followed the recent decline in the S&P 500. But if past performance is any indication, Bitcoin might be experiencing a resurgence.

United States President Donald Trump assumed office in November for a second term, but since then, the US stock market has dropped by about 10%. Since the global recession hit the markets hard in 2009, this is the worst start to a US presidency. Although there are numerous causes for this decline, uncertainty on economic strategy and worries about inflation have contributed.

In the past, it has often signaled impending volatility when the S&P 500 and Bitcoin decline simultaneously. The bear market of 2022, which saw prolonged losses, was the last time both markets fell precipitously at the same time. Not all dips, though, lead to protracted downturns. Some have led to a notable rebound, especially since the cryptocurrency’s halving cycles.

How is the market reacting to Trump’s second term?

Since his return, the S&P 500 has fallen 9%, marking the worst start to a presidency since 2009.

Back then, a recession drove the drop. This time, uncertainty is in the driver’s seat.

Let’s dive into the data