• Home
  • Contact Us
  • Privacy & Policy
Sunday, May 22, 2022
Finances Advise
No Result
View All Result
  • Home
  • Business
  • Commodities
  • Crypto News
    • Block chain
    • Bitcoin
    • Ethereum
    • Litecoin
  • Finance
    • Financial Advisors
    • Personal Finance
    • Market Insider
  • Forex
  • Investing
  • Stocks
  • ICOs
  • Trading
  • Home
  • Business
  • Commodities
  • Crypto News
    • Block chain
    • Bitcoin
    • Ethereum
    • Litecoin
  • Finance
    • Financial Advisors
    • Personal Finance
    • Market Insider
  • Forex
  • Investing
  • Stocks
  • ICOs
  • Trading
No Result
View All Result
Finances Advise
No Result
View All Result
Home Crypto News Bitcoin

Bitcoin’s Correlation to the Stock Market Continues to Fall: A Bullish Sign?

by admin
March 24, 2021
in Bitcoin
0
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter




As decentralized digital assets, Bitcoin and the crypto market at large has often been regarded as an isolated bubble or safe haven from the traditional stock market.

But as an asset class, cryptos have always been fundamentally tied to equities, closely tracing price levels of major indices. This was clearly displayed in the global stock market crash last March, as Bitcoin plummeted nearly 50% as the S&P 500 and NASDAQ index both suffered 30% losses.

In some ways, however, this correlation has been a blessing for the crypto market as of recent. Since the start of 2021, cryptos roared to new highs, with Bitcoin and Ethereum returning 100% and 150%, respectively. With historically low interest rates and the Federal Reserve’s extensive repo operations, the tech sector and NASDAQ rallied and even propped up the crypto market. However, recent fears of rising interest rates and treasury yields have led to a mass sell-off, sending the NASDAQ and Bitcoin tumbling 10% from their respective highs. 

Bitcoin Monthly Moving Correlation to Equities Drop

Bitcoin’s 30 day moving correlation to equities spiked to 0.4, the highest it had been in months. Many investors and analysts expected further correction for the tech-heavy NASDAQ index, as higher interest rates would erode future cash flow and debt-heavy growth stocks would continue to lose their appeal. With high correlation levels and treasury yields rising, indicators pointed towards Bitcoin trending lower short-term. 

However, the major cryptocurrency recently broke its correlation with the NASDAQ. This week alone, Bitcoin’s correlation levels to equities continued to drop, ending the week just below 0.2. While not necessarily a bullish indicator, this is a positive sign for Bitcoin’s short-term price level. 

https://twitter.com/Negentropic_/status/1373333929160286210 

This is due to the fact that the NASDAQ continues to face downward pressure, as tech’s astronomically high valuations become harder to justify with current macroeconomic developments. Under previously high correlation levels, Bitcoin’s potential upward movement beyond $60,000 would have likely been dampened by the bearish sentiment setting in for tech stocks. 

Featured image from UnSplash 



Tags: BitcoinsbullishcontinuesCorrelationfallmarketSignstock
  • Trending
  • Comments
  • Latest

A 48-year market vet warns that the Fed will be forced to tighten policy ‘way sooner’ than investors anticipate as inflation continues to soar — triggering a stock market crash of up to 80%

August 28, 2021
27-year-old UG graduate now millionaire proposes to girlfriend on b’day in video

27-year-old UG graduate now millionaire proposes to girlfriend on b’day in video

August 9, 2021

‘It’s begging to be destroyed’: A stock trader who says he made more than $100,000 shorting the market during the 2008 crash just bet against the S&P 500 — and warns there’s a ‘fair chance’ stocks are about to drop 25%

September 11, 2021

Stocks tanked in the first quarter, and new research shows there should be a reversal by the end of June

April 15, 2022

Stock Market Plunge: 5 Unstoppable Stocks on Sale to Buy Now and Hold Forever | The Motley Fool

0

Uber Hacking: Customers Not at Risk of Financial Crime, Says Minister

0

Black Friday Merchants Look to Extend Moment of Retail Optimism

0

Hotshot Snapchat Founders Face a Dilemma: Lie Low or Live Large?

0

Stock Market Plunge: 5 Unstoppable Stocks on Sale to Buy Now and Hold Forever | The Motley Fool

May 22, 2022
FOREX-Dollar hits two-decade high amid rising US charges, Ukraine struggle, China’s lockdowns

FOREX-Dollar hits two-decade high amid rising US charges, Ukraine struggle, China’s lockdowns

May 22, 2022

Here’s the real reason the stock market is coming unglued — and it isn’t because of weak earnings

May 22, 2022
FOREX-Dollar firm as COVID-19 resurgence hits reflation trades

FOREX-U.S. dollar hits 20-year high as risk aversion dominates

May 22, 2022

Recent News

Stock Market Plunge: 5 Unstoppable Stocks on Sale to Buy Now and Hold Forever | The Motley Fool

May 22, 2022
FOREX-Dollar hits two-decade high amid rising US charges, Ukraine struggle, China’s lockdowns

FOREX-Dollar hits two-decade high amid rising US charges, Ukraine struggle, China’s lockdowns

May 22, 2022

Categories

  • Bitcoin
  • Block chain
  • Business
  • Commodities
  • Ethereum
  • Financial Advisors
  • Forex
  • Investing
  • Litecoin
  • Market Insider
  • Personal Finance
  • Stocks

Site Navigation

  • Home
  • Contact Us
  • Privacy & Policy

We bring the Best and latest Crypto News

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • Home
  • Business
  • Commodities
  • Crypto News
    • Block chain
    • Bitcoin
    • Ethereum
    • Litecoin
  • Finance
    • Financial Advisors
    • Personal Finance
    • Market Insider
  • Forex
  • Investing
  • Stocks
  • ICOs
  • Trading

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.