- Bitcoin’s correlation with Nasdaq 100 futures has slowly disappeared, dropping to nearly zero over the past 30-day period.
- Analysts argue a lack of consistent negative correlation between Bitcoin and equities suggests BTC is not a safe haven.
- Publicly-traded Bitcoin miners are accumulating BTC by raising capital and leveraging their holdings, accumulating more tokens.
- Bitcoin may lose its position as an inflation hedge with the falling correlation with tech stocks.
Bitcoin’s positive link with Nasdaq has disappeared a debate amongst proponents on cryptocurrency’s role in diverse portfolios. BTC played a crucial role in investment portfolios in the pandemic era.
Bitcoin 30-day correlation with tech stocks plunges, investors book profits
There has been a positive correlation between Bitcoin and the Nasdaq 100 since the beginning of February 2020. Considering the pandemic-era correlation it motivated investors to include Bitcoin in their investment portfolios.
Since September, BTC price has increased by over 40%, and the correlation with tech stocks has dropped from 0.56 to zero. Bitcoin was considered a hedge against inflation due to its positive correlation with Nasdaq stocks.
Carsten Menke, head of next-generation research with Bank Julius Baer, was quoted as saying:
The lack of a consistent and negative correlation between Bitcoin and equities clearly suggests that Bitcoin is not yet a safe haven.
Menke considers that Bitcoin is likely to suffer a price drop in times of financial-market stress like other riskier assets in traders’ portfolios.
Alongside the dropping correlation with stocks, Bitcoin accumulation by miners is on the rise. Publicly-traded BTC miners are accumulating their assets and meeting operational expenses by leveraging the crypto.
Daniel Joe, a cryptocurrency analyst, recently noted that Bitcoin miners are buying more assets and mining equipment. The analyst considers that this is a bullish sign for BTC price.
Marathon, a #Bitcoin Miner is issuing up to $500m in bonds to buy more #BTC and mining equipment.
— Daniel Joe (@DanielJoe916) November 15, 2021
A miner is BUYING more #BTC and mining equipment. This is VERY BULLISH.https://t.co/sz3OmJX4wl pic.twitter.com/FFjOFsV0V8
FXStreet analysts have evaluated the BTC price trend and predicted that Bitcoin price correction has started. Analysts have set the next target for BTC price at $54,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.