Logically this makes sense because the money from institutions will affect the spot price.
However there are many variables to consider.
- The correlation comes and goes based on market cycle bubbles.
- A stronger correlation implies a stronger bubble.
- The correlation isn't helpful.
- Predicting the stock market is harder than predicting Bitcoin movements.
- Bitcoin goes up exponentially and stocks do not.
- Stocks do not have a 4-year cycle.
- Bitcoin being bought by the ETFs today are largely long-term holds.
- Stocks going down won't cause any of those holds to sell.
- Stocks can be printed out of thin air and Bitcoin can't.