Bitcoin price correlation with technology stocks: analysis of current trends
Shawqi Dulaimi 05-18-2024 Less than a minute
Bitcoin price correlation with technology company stocks: Analysis of current trends. Bitcoin price correlation with technology company stocks: Analysis of current trends
Recent Bloomberg reports indicate that Bitcoin, the leading cryptocurrency, is once again trading in tandem with technology stocks.
The 90-day correlation between Bitcoin and the Nasdaq 100, which includes the largest technology companies, reached 0.46, its highest level in almost a year.
This increasing correlation reflects the decline in the idea of portfolio diversification that Bitcoin proponents often emphasize.
Bitcoin correlation with stocks:
The beginning of this year saw a significant decline in Bitcoin's correlation with stocks.
In April, the correlation turned negative, according to Jurian Timmer of Fidelity.
The relationship between Bitcoin and major stocks fluctuates based on macroeconomic conditions.
For example, this correlation rose to 0.50 in May 2022, as well as to high levels in 2020 during the period of quantitative easing.
Earlier this week, major US stock market averages hit record highs after the latest CPI report showed US inflation falling.
