The S&P 500 has entered correction territory, falling 10% from its all-time high. Historically, this decline is a common occurrence, and past corrections have led to significant drops in related assets like bitcoin. Since the index’s inception in 2009, it has experienced multiple 20% corrections, including declines in 2009, 2019, 2020, and 2022.
Bitcoin, which has fallen 30% from its peak, is following a typical pattern of past bull market corrections. The most recent correction occurred in August 2024 during the yen carry trade unwind. Historically, these declines are normal, with past data showing that bitcoin bottomed out after a similar correction, eventually recovering.
While some might panic over the S&P 500’s decline, experts note that such corrections are common and often precede larger market movements. By understanding historical patterns, investors can better navigate market volatility and make informed decisions about their assets, including bitcoin.
Source: https://www.coindesk.com/markets/2025/03/14/s-and-p-500-enters-correction-territory-what-does-this-mean-for-bitcoin