![Bitcoin and S&P 500 divergence echoes pre-COVID trends, potential realignment ahead](https://cryptoslate.com/wp-content/themes/cryptoslate-2020/imgresize/timthumb.php?src=https://cryptoslate.com/wp-content/uploads/2024/08/btc-37.png&w=70&h=37&q=75)
Quick Take
Bitcoin and the S&P 500 are currently diverging, a trend that has occurred before, most notably in 2019 leading into the COVID-19 pandemic. Back then, the S&P 500 rose from around 2,900 to 3,400, while Bitcoin fell from approximately $11,000 to below $10,000. This divergence began in June 2019, with both assets eventually converging after the market upheaval in March 2020.
![2019 S&P 500 vs BTCUSD: (Source: TradingView)](https://cryptoslate.com/wp-content/uploads/2024/08/btc-37.png)
The current divergence, which also started in June, mirrors past patterns where market stress, like the yen carry trade unwind, led to significant sell-offs similar to COVID-19. With Bitcoin and the S&P 500 reaching new all-time highs in March, the question now is whether Bitcoin will again realign with the S&P 500 as market conditions evolve. CryptoSlate has explored these dynamics, drawing on historical parallels to understand the potential trajectory of these assets.
![2024 S&P 500 vs BTCUSD: (Source: TradingView)](https://cryptoslate.com/wp-content/uploads/2024/08/btc-38.png)