Bitcoin and Nasdaq Price Correlation
In recent days, the correlation between Bitcoin and the Nasdaq stock index has reached its lowest level in 2 years. The king of the crypto market is moving differently from U.S. stocks, particularly tech stocks, which performed well during the crypto bear market. The question is, is this disengagement from U.S. stock markets good for Bitcoin?
Minimal Correlation Between Bitcoin and Nasdaq Prices
Bitcoin’s price has increased by about 25% in the past month, while Nasdaq’s price shows a less pronounced increase of 9.73%, indicating a clear divergence in the correlation between the two assets. Historically, the correlation between Bitcoin and Nasdaq has alternated between strong connection and periods of complete price action independence. Currently, the correlation between Bitcoin and the U.S. stock exchange index has diminished to -0.20%, indicative of two disconnected charts.
Bitcoin and Tech Stocks
The relationship between the price of Bitcoin and U.S. tech stocks, such as Alphabet, Amazon, Apple, Intel, Meta, Microsoft, and Nvidia, has also seen a significant decrease in correlation, currently at 12.8%, its lowest level in two years. This indicates that Bitcoin has reached a level of maturity, trading with consistency independent of U.S. stock markets.
Overall Outlook for Bitcoin
Bitcoin’s price is above $37,000 with a market capitalization of $666.9 billion, and it has seen a significant increase in trading volume. Its dominance is currently at 49.36%, hinting at a bullish season. On the derivatives market front, traders’ interest in Bitcoin has increased significantly.
Hot Take: The Future of Bitcoin
With an increasing interest from financial traders and the potential approval of a spot ETF for Bitcoin, the market is poised for a bullish continuation. However, before the start of the real bullish market that will open the door to a new all-time high for Bitcoin, a few months of slight pain may pass.
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