Bitcoin grows only if S&P 500 grows!

Traders buying stocks want to protect themselves by hedging. Some keep gold in their portfolio (5–10%), some buy bonds, but last years there are also some believing in cryptocurrencies. Their fundamental idea is

fiat currencies are printed massively, so it will be devalueated soon and crypto is a future.

We are smart enough so we invested in crypto in advance.

During the next big crisis everything will be losing its value, except crypto.

After some trivial analysis of S&P 500 and BTC/USD charts it turned out that bitcoin/crypto growth is just a side effect of “excessive liquidity”, cryptocurrencies grow only when S&P 500 grows.

Let’s see 2018–2020 chart:

and 2016–2018 chart:

Orange markers show periods of bitcoin growth and all that time there was SnP growth. What is even more important — there are quite big periods when SnP was growing but BTC was dropping.

To sum up: please, don’t have illusions about cryptocurrencies. It has a huge potential, of course, but it grows only if S&P grows.