Bitcoin and Nasdaq 100 futures correlation evaporates as crypto investors book profits
|- 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
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.
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