Many are betting that bitcoin will protect their portfolios against market uncertainty and inflation. For an asset to serve as such a safe haven, it should be uncorrelated with the rest of the financial market. Between 2014 and 2020, bitcoin's 360-day correlation with the S&P 500 hovered around 0.
Bitcoin's correlation with the rest of the financial market started to increase at the onset of the COVID-19 pandemic. The bitcoin price plummeted almost 60% simultaneously as the rest of the financial market also panicked.