- Bitcoin’s correlation with the Nasdaq 100 has fallen to just 3% in June, down from the overall 60% in 2022.
- BTC price has outperformed the stock index year-to-date and over the past year.
- Bitcoin price jumped to a year high last week after news of a spot Bitcoin ETF application by global asset manager BlackRock.
Bitcoin’s correlation with tech stocks has declined sharply over the past few months, more so after the benchmark cryptocurrency’s rally to a new year-to-date price this month.
According to an& analysis published by market data research platform Kaiko released today, June 26, BTC has continued to break its correlation with the Nasdaq.&
Kaiko researchers note that in June, Bitcoin’s and the Nasdaq 100 trading trajectory diverged to currently sit at just 3% correlation.
Bitcoin outperformed Nasdaq 100 in June
The falling correlation, according to Kaiko, has been enhanced by the cryptocurrency’s double digit gains in June.
In this, BTC outperformed the tech equities’ 3%. While the Nasdaq 100 has gained about 35% year-to-date, its managed only 22% in the past year. BTC on the other hand is up more than 108% YTD and over 72% over the past year, even with the sell-offs occasioned by the collapse of TerraUSD and FTX in 2022.
It’s a performance that has seen the lockstep trading witnessed in the second half of last year shrink from 60%, the Kaiko analysts pointed out.&
CoinJournal analyst Dan Ashmore also recently looked at the fading correlation between the top crypto asset and stocks, examining the whys.&
BlackRock ETF news major bullish catalyst
On current outlook, Bitcoin has outperformed traditional risk assets even after a negative sentiment permeated the market following the US Securities and Exchange Commission (SEC) regulatory actions against Binance and Coinbase. Earlier, BTC had performed much better as stocks floundered amid the banking sector turmoil.
And just this past week, as equities broke their winning streak on new macroeconomic fears, Bitcoin led the crypto market higher &- fueled by news of BlackRock’s ETF filing. BTC currently sits around $30,260, down 1% in the past 24 hours, but still up by over 15% in the past seven days.
CoinShares’ Chief Strategy Officer Meltem Demirors& notes that together with BlackRock, companies with a combined $27 trillion in client assets are working to offer customers access to the crypto asset class.
1/ last week's @BlackRock spot Bitcoin ETF filing was big news!
but, it's not the only story. many of the largest financial institutions in the US are actively working to provide access to Bitcoin and more.
a quick glance &- $27 trillion of client assets here! pic.twitter.com/azmHZmUL2a
— Meltem Demirors (@Melt_Dem) June 26, 2023
But while the Blackrock-inspired ETF frenzy remains a key bullish catalyst, other metrics such as open interest suggest growing inflows and speculation. Bitcoin bulls holding above the psychological $30k level or bouncing from fresh retest below that could form the next leg for BTC price upside action.
As highlighted here, the $34k level is increasingly looking as the next major hurdle for BTC in the short term.
The post Bitcoin’s correlation with Nasdaq 100 falls to 3-year low appeared first on CoinJournal.
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