S&P 500 Enters Correction Territory, What Does This Mean For BTC?
03/14/2025 18:36
Historical analysis on S&P 500 and bitcoin corrections.
Historical analysis on S&P 500 and bitcoin corrections.
Mar 14, 2025, 11:18 a.m. UTC
The S&P 500 has now entered correction territory, defined as a 10% decline from its all-time high. A further 10% drop would signal a bear market. But is it time to panic? Since Bitcoin’s creation in 2009, the S&P 500 has experienced multiple 20% corrections.
Following the 2008 global financial crisis the index had plunged nearly 60%. In 2019, amid bitcoin’s bear market, the S&P 500 declined by 20%, bitcoin fell as much as 85% from its all-time high. The covid-19 crash in March 2020 saw the index drop almost 40% with bitcoin shedding 60% of its value. Most recently in 2022, the index corrected by 25%, bitcoin bottomed out one month later after dropping by a further 25% to a cycle low of $15,000.
Historically, 10% corrections in the S&P 500 have been common. Meanwhile, bitcoin has dropped 30% from its all-time high during this correction. Looking at past bull market corrections, such declines are a normal occurrence, with the most recent 30% correction happening in August 2024 during the yen carry trade unwind.
James Van Straten
James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its interplay with the macroeconomic environment. Previously, James worked as a Research Analyst at Saidler & Co., a Swiss hedge fund, where he developed expertise in on-chain analytics. His work focuses on monitoring flows to analyze Bitcoin's role within the broader financial system. In addition to his professional endeavors, James serves as an advisor to Coinsilium, a UK publicly traded company, where he provides guidance on their Bitcoin treasury strategy. He also holds investments in Bitcoin, MicroStrategy (MSTR), and Semler Scientific (SMLR).
