By Bitcoinist - kunyaka oyi-1 eyadlulayo - Ixesha lokufunda: imizuzu emi-2
BitcoinUnxulumano oluyothusayo lwe-Stock Market luyaqhubeka nokukhula
Idatha ibonisa 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
Ngokwengxelo yamva nje yeveki evela Uphando lweArcane, the BTC-Nasdaq correlation has grown to a new ATH of over 0.8.
"IUlungelelaniso” 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.
Ngoku, nantsi itshathi ebonisa intsingiselo kwi Bitcoin 30-day correlation with Nasdaq, S&P 500, DXY, and igolide kwiminyaka embalwa edlulileyo:
Looks like the coin has become increasingly tied with the stock market | Source: UPhando lweArcane's Uhlaziyo lweVeki-iVeki ye-18, ngo-2022As you can see in the above graph, 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.
Ixabiso leBBT
BitcoinIxabiso 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: I-BTCUSD kwi-TradingView Umfanekiso obonakalayo ovela kwi-Unsplash.com, iitshathi ezivela kwi-TradingView.com, i-Arcane ResearchUmthombo wo kuqala: Bitcoinna