• Bitcoin’s 30-Day Correlation with Nasdaq has dropped to a low of 0.29.
• This indicates that movements in US markets are becoming less relevant to Bitcoin.
• The correlation was at a high positive value throughout most of 2022, suggesting that BTC was moving closely with the US equity then.
The crypto-market has been displaying a strong momentum lately, and Bitcoin has been leading the way. The latest weekly report from Arcane Research has provided some insights into how the digital asset has been performing in relation to Nasdaq. According to the report, the “30-day correlation” between Bitcoin and Nasdaq has plunged to just 0.29.
The “30-day correlation” is an indicator that measures how closely Bitcoin and another given asset performed during the past month. When the value of this metric is positive, it means BTC has been responding to changes in the price of the other asset by moving in the same direction. On the other hand, negative values imply BTC has been displaying opposite price action relative to the asset.
The report notes that the correlation was at a high positive value throughout most of 2022, suggesting that BTC was moving closely with the US equity then. However, the recent plunge in the correlation indicates that movements in US markets are becoming less relevant to Bitcoin. This could be due to a few different factors, such as the increasing presence of institutional investors who treat Bitcoin as a risk asset.
In addition, the report also notes that the trend in the correlation is likely to remain low, as the market is witnessing a strong momentum in the cryptocurrency space. This could be due to the growing number of people investing in Bitcoin and other digital assets, as well as the increasing number of companies accepting cryptocurrencies as a payment method.
Overall, the report provides a valuable insight into the relationship between Bitcoin and Nasdaq. It seems that, despite the strong momentum in the crypto market, the correlation between the two assets is decreasing. This could be due to the increasing presence of institutional investors and companies accepting cryptocurrencies as a payment method. Furthermore, the trend in the correlation is likely to remain low, indicating that Bitcoin is becoming more independent from traditional financial markets.