The S&P 500 has now entered the correction territory, defined as a 10% decrease since its historical maximum. An additional 10% drop would indicate a bearish market. But is it time to panic? Since the creation of Bitcoin in 2009, the S&P 500 has experienced multiple corrections of 20%.
After the 2008 world financial crisis, the index had sunk almost 60%. In 2019, in the midst of the Bitcoin bears market, the S&P 500 decreased by 20%, Bitcoin fell to 85% from its historical maximum. The Covid-19 accident in March 2020 saw the almost 40% index fall with Bitcoin that ruled out 60% of its value. More recently in 2022, the ranked index in 25%, Bitcoin touched a month after falling at 25% more to a minimum cycle of $ 15,000.
Historically, 10% corrections in S&P 500 have been common. Meanwhile, Bitcoin has fallen 30% since its historical maximum during this correction. Looking at the previous upward market corrections, such decreases are a normal occurrence, and the most recent correction of 30% occurs in August 2024 during the transport trade.
