The S&P 500 has entered correction territory, marked by a 10% decline from its peak. A further 10% drop would indicate a bear market. However, is this a cause for alarm? Since Bitcoin’s inception in 2009, the S&P 500 has faced numerous 20% corrections.
Following the 2008 financial crisis, the index plummeted nearly 60%. In 2019, during Bitcoin’s bear market, the S&P 500 fell by 20%, while Bitcoin dropped 85% from its peak. The March 2020 covid-19 crash saw the index decline almost 40%, with Bitcoin losing 60% of its value. Most recently in 2022, the index corrected by 25%, with Bitcoin reaching a cycle low of $15,000 a month later after an additional 25% drop.
Historically, 10% corrections in the S&P 500 are common. Bitcoin has decreased 30% from its all-time high during this correction. Reviewing past bull market corrections, such declines are typical, with the most recent 30% correction occurring in August 2024 during the yen carry trade unwind.
— news from CoinDesk
