By Bitcoinist - 1 tausaga talu ai - Taimi Faitau: 2 minute
BitcoinO Fa'asa'oga Fa'atauga Fa'ate'ia Fa'aauau le Fa'atupulaia
Faʻaalia faʻamatalaga 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
E tusa ai ma le lipoti lata mai o vaiaso taitasi mai Arcane Suesuega, the BTC-Nasdaq correlation has grown to a new ATH of over 0.8.
O le "faamaopoopoga” 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.
Ia, o le siata lenei o loʻo faʻaalia ai le tulaga i le Bitcoin 30-day correlation with Nasdaq, S&P 500, DXY, and auro i le lua tausaga talu ai:
Looks like the coin has become increasingly tied with the stock market | Source: Arcane Research's The Weekly Update - Vaiaso 18, 2022E pei ona e va'ai i le kalafi i luga, 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.
BTC Tau
Bitcoinle tau 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.
I le masina talu ai, o le crypto ua leiloa le 25% i le tau. O le siata o loʻo i lalo o loʻo faʻaalia ai le tulaga i le tau o le tupe siliva i le lima aso talu ai.
The price of BTC seems to have plunged down in the last few days | Source: BTCUSD luga TradingView Ata fa'aalia mai Unsplash.com, siata mai TradingView.com, Arcane ResearchPunavai autu: Bitcoino