Bitcoin's 30-Day Correlation To Tech Stocks Falls To Zero: Report
Data shows that Bitcoin’s (CRYPTO: BTC) 30-day correlation with the Nasdaq 100 Futures has fallen to a 21-month low of 0.0075.
What Happened: According to a report from Bloomberg, Bitcoin ended its “pandemic-era correlation” with tech stocks that began in February 2020.
The Nasdaq 100 tracks a basket of the 100 largest tech stocks by market capitalization that is listed on the Nasdaq. Bloomberg reported that since February 2020, Bitcoin’s correlation with the Nasdaq 100 had been largely positive.
The correlation reached a peak of 0.56 in September 2021 — a reading that led many market participants to conclude that tech stocks and Bitcoin were moving together.
Some industry watchers also believe that Bitcoin is akin to digital gold and view the leading cryptocurrency as a hedge against inflation. Yet data from Chainalysis shows there is still “no significant evidence” that proves Bitcoin has acted as an inflation hedge.
Since the beginning of the week, Bitcoin has lost over 8% of its value. The leading digital asset was trading above $65,000 on Monday but had fallen under $59,600 at the time of publication.
Meanwhile, leading tech stocks such as Alphabet Inc Class A (NASDAQ:GOOGL), Amazon.com Inc (NASDAQ:AMZN) were up by a little over 1% in the last week. Apple Inc (NASDAQ:AAPL) and Meta Platforms Inc (NASDAQ:FB) were up by a little over 3% while Tesla Inc (NASDAQ:TSLA) was down by 1.3% over the same period.
Photo by Tech Daily on Unsplash.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.