Bitcoin correlation to Nasdaq sinks to 3% low in June Bitcoin correlation to Nasdaq sinks to 3% low in June
Following a period of close correlation between Bitcoin and the Nasdaq, this week saw a strong decoupling.
2 min read
Updated: Jul. 4, 2023 at 3:48 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin’s (BTC) correlation with the Nasdaq sank to 3% in June, according to data from Kaiko – indicating diverging sentiment between cryptocurrencies and tech stocks.
The price-performance for the leading cryptocurrency in June was between $24,800 and $31,360, opening the month at $27,200.
BlackRock’s spot Bitcoin ETF filing on June 15 was a bullish catalyst, reversing the prior downtrend to a new year-to-date high of $31,440 some eight days later.
Since then, Bitcoin has been trading in a narrow band between $29,860 and $31,030 – falling 3% since its YTD high on June 23.
Meanwhile, the tech-heavy Nasdaq 100 has been in a continuous uptrend since the start of the year – reaching a YTD high of $15,230 on June 16. Since Bitcoin’s year-to-date high on June 23, the Nasdaq has risen 0.7%.
On a 30-day basis, the Bitcoin-Nasdaq correlation started the year at 60% and slipped to 22% by March, indicating a decrease in the similarity of price movements between the two. This period of change consolidated somewhat, with the correlation struggling to rise above 45%.
The Bitcoin-Nasdaq correlation has continued to move lower throughout the year, dropping sharply to 3% this week from over 20% in May.
Data research firm Ecoinometrics published a chart of Bitcoin-Nasdaq range movements from the start of the year to June 24. It showed a similar trend between the two until April, after which a “nice decoupling” occurred.
Ecoinometrics further commented that the Nasdaq’s performance is disconnected from the broader macroeconomic landscape – implying an uptrend reversal is on the cards.
“But this bear market rally for stocks cannot escape the bleak macro picture forever.“
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Samuel Wan
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Nasdaq
NASDAQ, which stands for the National Association of Securities Dealers Automated Quotations, is an American stock exchange based in New York City and one of the largest electronic stock markets in the world.
Kaiko
Kaiko is a market data provider in the blockchain-based digital assets space, founded in 2014, that provides institutional investors and market participants with enterprise-grade data infrastructure.