According to data tracked by analyst firm Block Scholes, Bitcoin is no longer correlated with leading US stocks. The 90-day correlation between the price of bitcoin and changes in Wall Street’s technology-oriented stock index, the Nasdaq, and the broader S&P 500 index has fallen to near zero.
Bitcoin does not correlate with US stocks
Data from Block Scholes, a company specializing in cryptocurrency analysis, shows that the correlation between Bitcoin and major stock indexes such as the Nasdaq and the S&P 500 is close to zero. This is the lowest value in the last two years.
This trend suggests that the largest cryptocurrency of the world is becoming increasingly independent of traditional markets. This may mean that traders who rely on traditional market sentiment and macroeconomic trends may be surprised by Bitcoin’s performance. Block Scholes lead analyst Andrew Melville said in a recent email:
It’s at the lowest level seen since July 2021, when bitcoin was between its two peaks in April and November… The drop in correlation came as the asset returned to losses suffered during last year’s restrictive cycle.
Recently, there has been a wave of optimism in the market thanks to the filing of applications for exchange-traded funds (ETFs) for Bitcoin from several major financial institutions, including BlackRock and Fidelity. Since BlackRock filed its request in mid-June, Bitcoin has seen a 25% increase in value, despite the steady performance of US stock indexes.
At the time of writing, the price of BTC is around USD 30,450 according to KMC.
Conclusion
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2023-07-06 16:00:11
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