• 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. 

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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