Bitcoin (BTC) trading platform SFOX has released a report on the volatility of the cryptocurrency market in May 2019, finding that the value of crypto is negatively correlated with the success of traditional markets.

SFOX published the study on June 6, 2019, claiming that in May “BTC had a nearly perfect negative correlation with the S&P 500, highlighting public interest in BTC as a hedge against global markets.”

Following the historic spike in bitcoin prices in late 2017, the value of BTC dropped significantly before entering an extended bear market that lasted throughout 2018. In the first several months of 2019, however, reports began to surface that the lowest point of the bear market had likely passed. Beginning in May, the value of bitcoin relative to the U.S. dollar began ramping up at a significant rate.

At the time of this report’s release, the rapid value growth seen in May had tapered off somewhat. This allowed SFOX to examine possible market influences on bitcoin’s price in an objective manner. In particular, SFOX was able to examine several factors that had little demonstrable influence. The market showed no discernable reaction following the U.S. Securities and Exchange Commission delayed decisions on a bitcoin exchange-traded fund, for example.

The report also tracked the price fluctuation in bitcoin against several other cryptocurrencies, the value of gold and the S&P 500. Bitcoin tracked at a similar rate to other cryptocurrencies and gold. But its correlation with the S&P 500 was inverse. This has led SFOX to conclude that bitcoin’s value has a direct negative correlation with the success of traditional stocks and is seen by many as an instrument for hedging financial bets.

SFOX’s report stated that the current status of the crypto industry is completely uncertain. There were few indicators to tell whether the bullish trend in the space will continue or reverse.