BTC-Nasdaq Correlation Near Zero: Decoupling or False Signal?

IconCryptoNewsTerminal Staff30 Jul, 2024

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BTC-Nasdaq Correlation Near Zero: Decoupling or False Signal?

The correlation between Bitcoin (BTC) and the Nasdaq 100 Index has dropped to its lowest level since May 2021, according to data from Matrixport China. The 20-day correlation coefficient, which measures the relationship between the two assets, has fallen to near zero, indicating that they are moving independently of each other. This decoupling could be a sign that Bitcoin is maturing as an asset class and becoming less correlated with traditional financial markets. However, it is also possible that the current low correlation is a temporary phenomenon caused by the recent volatility in both the cryptocurrency and equity markets. Only time will tell whether the decoupling between Bitcoin and the Nasdaq is a long-term trend or a short-term anomaly. However, the current low correlation does suggest that Bitcoin is becoming more independent of traditional financial markets and that it may be less affected by macroeconomic factors in the future.

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