By Bitcoinist - 1 afọ gara aga - Oge Ọgụgụ: nkeji 2
Bitcoin’s Shocking Stock Market Correlation Continues To Grow
Ihe ngosi data Bitcoin has continued to become increasingly tied to the US stock market as the crypto’s correlation with Nasdaq reaches a new all-time high.
Bitcoin’s Correlation With The Stock Market Continues To Go Up
Dị ka ọhụrụ kwa izu akụkọ si Nnyocha Arcane, the BTC-Nasdaq correlation has grown to a new ATH of over 0.8.
The "mmekọrịta” here is a measure of how the price of Bitcoin changes in response to movements in other assets like stock market equities.
When the value of this indicator is positive, it means BTC’s correlation with that asset is positive right now. This means that the crypto’s price is moving in the same direction as the asset’s.
On the other hand, a negative correlation implies that the price of the coin is responding to changes in the asset by moving in the opposite direction.
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A value of zero naturally suggests that there is no real correlation between BTC and the given equity at the moment.
Ugbu a, ebe a bụ eserese na-egosi na-emekarị na Bitcoin 30-day correlation with Nasdaq, S&P 500, DXY, and gold over the past couple of years:
Looks like the coin has become increasingly tied with the stock market | Source: Mmelite kwa izu nke Arcane Research - Izu 18, 2022Dịka ị na-ahụ na eserese dị n'elu, Bitcoin has been mirroring the stock market throughout this year as the correlation has only surged up in recent months.
The report notes that BTC’s correlation with Nasdaq was especially visible during last week’s FOMC. The value of the metric for the index has now reached a new ATH at around 0.8.
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The chart also shows that the cryptocurrency’s correlation with DXY and Gold has been negative during recent months.
As per the report, the growing institutionalization of Bitcoin may be the cause behind the increasing correlation with the stock market.
Investors have been treating the coin as a risk asset, and as long as this mindset continues and the stock market continues to struggle, BTC is likely to remain tied to Nasdaq and S&P 500.
Ọnụahịa BTC
Bitcoinọnụahịa plummeted down in the past week, reaching as low as below $30k yesterday. At the time of writing, the coin trades around $31.6k, down 19% in the last seven days.
Over the past month, the crypto has lost 25% in value. The below chart shows the trend in the price of the coin over the last five days.
The price of BTC seems to have plunged down in the last few days | Source: BTCUSD na TradingView Onyonyo ewepụtara sitere na Unsplash.com, eserese sitere na TradingView.com, Nnyocha ArcaneIsi mmalite: Bitcoinbụ