Bitcoin weekly correlation with Nasdaq hits 2-year low

As Bitcoin (BTC) takes a little break from its previous gains, the relationship between the largest cryptocurrency by market capitalization and the stock market is often a matter of interest among analysts, and recently this correlation has hit a record low for more than two years.

Specifically, the weekly correlation of the maiden crypto asset to the Nasdaq index has dropped to -0.39, its lowest point since August 2021, or 26 months, as observed by the co-founder of crypto market analytics platform Reflexivity Research, Will Clemente, in an X post published on October 30.

Bitcoin’s correlation with stocks since early 2021. Source: Will Clemente

Meanwhile, stocks have experienced a massive turn for the worse in recent weeks, shedding a significant portion of their gains due to increased macroeconomic challenges, whereas Bitcoin witnessed a major rally that managed to flip the market capitalization of electric vehicle manufacturer Tesla (NASDAQ: TSLA).

At the same time, the financial expert and CEO of crypto trading platform CoinRoutes, Dave Weisberger, has pointed out that the macroeconomic outlook for Bitcoin, as well as for gold, was “as overwhelmingly positive as it could possibly be,” taking into account geopolitical uncertainties, as Finbold reported earlier.

Bitcoin price analysis

Cryptocurrency

Entrepreneur D. Weisberger: Bitcoin macroeconomics is 'overwhelmingly positive'

Cryptocurrency

Bitcoin to hit $50,000 pre-halving, says crypto expert

Cryptocurrency

'Rich Dad' R. Kiyosaki shares ‘mix’ to ‘survive the greatest crash in world history’

Cryptocurrency

This is when Bitcoin might hit the ‘highly anticipated’ $100k mark

Cryptocurrency

Former SEC insider says spot Bitcoin ETF is 'a matter of months'

At press time, Bitcoin was trading at the price of $34,404, which indicates a decline of 0.95% on the day and a 0.42% loss across the previous week, but it is still holding onto the monthly gains of 26.53%, according to the latest data on October 31.

Bitcoin 30-day price chart. Source: Finbold

Indeed, the flagship decentralized finance (DeFi) asset previously had the tendency to move in the same direction as the Nasdaq index, which has led some financial experts to use it as an argument against Bitcoin’s role as a diversifier. However, the recent decorrelation of -0.39 might prove them wrong.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Comments

Post a Comment

Popular posts from this blog

Ethereum: A $1000 Investment in ETH Turns $2.5 Million in April 2023

Image
Vitalik Buterin published a white paper in 2014 and Ether made its debut in the indices in 2015. ETH ballooned to become the world’s largest altcoin cryptocurrency only second to Bitcoin in market cap. During its launch, ETH was trading at $0.42 but quickly jumped to $0.74 before investors got wind of the asset. The relatively new crypto was affordable giving investors ample time and opportunity to accumulate it every month in 2015. However, things turned when it crossed the $2 mark in January 2016 and skyrocketed in price thereafter. Early entrants made millions with ETH by buying low and selling high. The late entrants brought the crypto at a premium price with less quantity as it went north sharply in the coming years. Also Read: VeChain: VET Price Prediction for the End of April 2023 Source: Coingecko Ethereum: A $1,000 In ETH Would Have Turned to $2.5 Million Today Source: newsbtc.com Considering that Ethereum was trading at $0.74 in 2015, a $1,000 investment w
Read more

Crypto News: Binance Adds Support For Bitcoin Ordinals

Image
Binance embraces Bitcoin NFTs The integration of Bitcoin NFTs into Binance ’s marketplace is expected to bring a surge of excitement to the already-thriving NFT space. Users will now be able to execute Bitcoin NFT transactions directly from their Binance accounts, streamlining the process and offering greater convenience. This development could mark a significant milestone in the world of NFTs, as the integration of Bitcoin NFTs allows users to utilize their Binance accounts for a wider range of transactions, beyond traditional cryptocurrencies. advertisement Read More: US SEC Sues Coinbase Exchange Following Binance Lawsuit Ordinals, introduced in Janurary of this year, have lately become the talk of the town. The Ordinals protocol has given Bitcoin an additional layer of utility where users can now use the token for more than just a store of value. The current lineup of supported Bitcoin NFTs on Binance ’s marketplace is extensive, featuring popu
Read more

Shiba Inu Might Hit $0.01 In These Many Years: Here's The Math

Image
The Shiba Inu [SHIB] ecosystem has been navigating through the contentious release of its layer-2 protocol, Shibarium. In the midst of this situation, SHIB faced a significant decline and was unable to rally. Nevertheless, there are those who maintain optimism about the meme coin’s potential for an upward movement. While the possibility of SHIB reaching $0.01 might seem ambitious, it is certainly not beyond the realm of possibility. The topic of whether Shiba Inu can achieve a value of $0.01 is a prevalent conversation among novice investors. Judging from the market cap alone, Shiba Inu would need a considerable expansion from its present value of $4.76 billion. To reach a token price of $0.01, SHIB would require a market capitalization of $5.9 trillion. It’s important to emphasize that achieving a market capitalization of $5.9 trillion would position Shiba Inu as a larger entity than Apple. This aspiration is highly speculative and falls beyond the conceivable realm, at least for
Read more