Bitcoin (BTC) is no longer tied to the U.S. stock market, according to a new analysis carried out by crypto derivatives firm Block Scholes.
The 90-day rolling correlation of changes in Bitcoin’s spot price to changes in Wall Street’s tech-laden Nasdaq index, and the broader S&P 500 index, has declined to nearly zero, according to the crypto firm’s data analysis.
The declining correlation between Bitcoin and stocks means that cryptocurrency traders focusing on traditional metrics such as market sentiment and macroeconomics may have to rethink their approach to digital assets.
Bitcoin’s price has gained 88% so far this year, trouncing a 32% year-to-date gain in the Nasdaq and a 17% gain in the S&P 500 index.
Bitcoin currently trades at just over $31,000 U.S. per coin, nearly double the $16,000 U.S. it was at last December.
Recent spot Bitcoin exchange-traded fund (ETF) applications by BlackRock (BLK), Fidelity, WisdomTree (WT), VanEck, and Invesco (IVZ) have added further momentum to crypto prices.
Improving macroeconomic conditions globally and expectations that interest rates will soon decline around the world have also increased investors’ risk appetite and led to the rally in Bitcoin and other digital coins and tokens, say analysts.
