Bitcoin-U.S. Stock Correlation Spikes to 18-Month High

IconCryptoNewsTerminal Staff11 Jun, 2024

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Bitcoin-U.S. Stock Correlation Spikes to 18-Month High

Cryptocurrency research firm K33 Research reports that the correlation between Bitcoin (BTC) and the U.S. equity market has reached its highest point in 18 months. According to The Block, BTC's 30-day correlation with the Nasdaq is currently at 0.64. The correlation coefficient measures the strength of the relationship between two variables, ranging from +1 to -1. A value closer to -1 indicates a strong negative correlation (inverse relationship), while a value closer to +1 indicates a strong positive correlation (direct relationship). This elevated correlation suggests that BTC's price movements are increasingly influenced by the broader stock market, particularly the tech-heavy Nasdaq. Market conditions, such as interest rate hikes and inflation, are likely contributing to this increased correlation. Investors should note that this correlation does not imply that BTC will always move in lockstep with stocks. However, it highlights the growing interconnectedness between traditional financial markets and the cryptocurrency space.

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