The S&P 500 is now entering the correction territory, defined as a 10% decline from all times high. An additional 10% collapse will signal a bear market. But is it time to panic? Since the creation of Bitcoin in 2009, the S&P 500 experienced many 20% correction.
Following the 2008 financial crisis that the index dropped by about 60%. In 2019, in the middle of the Bitcoin bear market, the S&P 500 declined by 20%, Bitcoin fell 85% from all time high. The COVID-19 crash in March 2020 saw an index collapse of nearly 40% with Bitcoin sheds of 60% of its value. Most recently -in 2022, the index corrected by 25%, Bitcoin dropped a month later after dropping an additional 25% to a cycle of less than $ 15,000.
Historically, the 10% correction in the S&P 500 is common. Meanwhile, Bitcoin dropped 30% from all times high during this correction. Looking at previous corrections in the bull market, such denials were a normal incident, with the latest 30% correction that occurred in August 2024 during the Yen Carry Trade Unwind.
