Clara Medley, director of research at digital asset data provider Kaiko, said that bitcoin (BTC/USD) currently showing the lowest correlation nasdaq,
Madeli shared his market outlook during a Interview with CNBC, where she highlighted bitcoin’s latest rally following major shocks in the banking sector in the form of the collapse of crypto-friendly banks Silvergate Bank, Silicon Valley Bank (SVB) and Signature Bank.
Bitcoin Breaks Lockstep Correlation With Nasdaq
Bitcoin price volatility was largely simultaneous in 2022 sharesis driven by an increase in downward pressure Rate of interest Seeing BTC and Nasdaq highly correlated.
Earlier this year, when cryptocurrencies soared higher amid a bear market rally, they did so alongside an upbeat stock market, helped by a resurgent tech sector and anticipation that the Federal Reserve would raise its interest rates. will start reducing.
While cryptocurrencies continue to react to the Fed’s monetary policy, last month bitcoin and the Nasdaq have not been so closely correlated in 2023.
According to Madeli, the current correlation between bitcoin and US stock indexes is at its lowest level since the bloodbath following the collapse of crypto exchange FTX in November.
“Bitcoin’s correlation with the Nasdaq is at its lowest level today since the FTX collapse. With FTX, it was a very idiosyncratic market event and so it only dipped briefly. We have seen a steady decline since inception.”
The decoupling isn’t just with bitcoin, but with the entire asset class against equities, he said, adding that cryptocurrencies faced a lot of negativity in January and February. Over the past week, there has been a bit of an unwinding as markets shook off bearish sentiment, particularly in the US with the prospect of a massive regulatory crackdown.
The boom for the leading stablecoin USD Coin (USDC) and Binance’s announcement that it will convert 1 billion Binance USD (BUSD) to bitcoin, ether and bnb He said that positive values are triggering.
A look at the markets shows that bitcoin is currently trading near $25,000, down 4.5% over the past 24 hours. However, the BTC price is up 14% in the past month after hitting a high of $26,500 on Tuesday.
In comparison, the Nasdaq is also trading down about 1% and down about -6% over the past 30 days. Year-to-date, the Nasdaq is up 8.6% as of 10:30 a.m. Tuesday, while bitcoin’s price is up more than 56% in that time.
