Part 1 Beginner Why long-term crypto holders borrow against assets instead of selling A strategic guide to liquidity management, capital preservation, and the real tradeoff between selling and borrowing crypto Open guide 
S&P 500 index, Bitcoin show further signs of decoupling as tech stocks prop up index
Roughly 93% of the 7% increase in the S&P 500 has been driven by seven tech stocks in 2023
This article was published 3 years ago. Some details may no longer reflect current market conditions or recent developments. If you spot anything that needs an update, contact us.
Quick Take
S&P 500 faces headwinds
- The S&P is roughly up 7% in 2023, but most of the gains have come from seven tech stocks, which coincidentally have the largest market cap in the index.
- While these stocks have incredibly elevated PE ratios, high rates and a lack of stimulus will provide headwinds for these stocks and S&P 500 as an index. As Q1 earnings season approaches.
- While the S&P 500 is starting to de-correlate further from Bitcoin, roughly at a 50% correlation. At the same time, the Nasdaq is down to a 42% correlation with Bitcoin.
GBTC
- The GBTC discount continues to narrow, as the discount to NAV is below 38%, while it was as high as 50% in Q4 of 2022.
- GBTC is up 117% year to date, outperforming Bitcoin, which has just surpassed $30,000.
- CryptoSlate did an extensive market report on the GBTC trade that had further implications for the crypto industry.
Market Cap $1.63T
24H Volume $43.76B
