Bitcoin’s Negative Correlation with Nasdaq Continues
Data reveals that the correlation between Bitcoin and the Nasdaq has remained negative since December. This information sheds light on the relationship between the cryptocurrency and traditional markets.
Understanding Correlation Metrics
An analytics firm, Kaiko, recently discussed the correlation trend between BTC and Nasdaq. Correlation is a metric that measures how closely the prices of two assets are linked over a specific period, such as the 60-day correlation.
A positive value indicates that both assets move in the same direction, while a negative value means they move in opposite directions. Zero correlation implies no relationship between the assets.
Bitcoin-Nasdaq 60-Day Correlation Chart
A chart illustrates the 60-day correlation trend between Bitcoin and Nasdaq 100 over the past year. The consistent negative correlation suggests that Bitcoin’s price movement has been inversely related to that of Nasdaq.
BTC Price Update
As of now, Bitcoin is trading at around $44,800, showing a 5% increase over the past week.
Hot Take: Implications for Bitcoin
The ongoing negative correlation between Bitcoin and Nasdaq indicates that the cryptocurrency operates independently from traditional markets. This independence may provide opportunities for Bitcoin to explore new territories and potentially experience growth in the future.
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