Recent data shows that bitcoin has completely broken away from stocks-buy-500-m-bitcoin/” rel=”nofollow”>US stocksThis is significant considering how the flagship cryptocurrency and these stocks had a positive correlation so far, which undoubtedly positively impacted bitcoin and the crypto-undervalued-altcoins/” rel=”nofollow”>Broader cryptocurrency market.
bitcoin has no correlation with US stocks
Data from the bitcoin-time-bull-market-intotheblock-explains-why/” rel=”nofollow”>IntoTheBlock Market Intelligence Platform shows that bitcoin’s correlation with the Nasdaq 100 and S&P 500 has dropped to -0.78 and -0.83, respectively. This means that bitcoin and these assets have a strong negative correlation, and their prices tend to move in opposite directions.
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In fact, that has been the case for a while now, as the flagship cryptocurrency has been in a major downtrend for a while. On the other hand, the Nasdaq 100 and S&P 500 have continued to enjoy significant rallies. Data from IntoTheBlock shows that the Nasdaq 100 and S&P 500 are up more than 7% and 4% over the same period. bitcoin-price-tragic-june/” rel=”nofollow”>last monthwhile bitcoin has fallen more than 15%.
A Bloomberg bitcoin-s-correlation-with-tech-breaks-down-amid-supply-overhang?embedded-checkout=true” rel=”nofollow”>report He also highlighted the “declining” correlation between bitcoin and US stocks and attributed this drop to the massive selling pressure that the flagship cryptocurrency is experiencing. Joshua Lim, co-founder of trading firm Arbelos Markets, told Bloomberg that this selling pressure caused by companies like bitcoin-selling-spree-continues/#:~:text=bitcoin%2C%20the%20largest%20cryptocurrency%20asset,potential%20impact%20on%20the%20crypto” rel=”nofollow”>German Government has “put a cap” on bitcoin’s upside as these US stocks trade at record highs.
Data from IntoTheBlock shows that it is precisely this selling pressure that has caused bitcoin to break away from these US stocks. At the beginning of June, bitcoin's correlation with the Nasdaq 100 and S&P 500 was 0.86 and 0.73, respectively. However, this strong positive correlation began to fall just as bitcoin miners began to dump a significant amount of their holdings. Bitcoinist bitcoin-price-tragic-june/” rel=”nofollow”>reported that these miners sold more than 30,000 btc in June.
bitcoin also witnessed increased selling pressure towards the end of June thanks to the bitcoin-holdings/” rel=”nofollow”>German Governmentwhich began dumping some of the bitcoins confiscated from the pirated film Movie2k. This selling pressure has not abated, as the German government has continued its bitcoin-selling-spree-continues/” rel=”nofollow”>sell-off this month.
The moment of truth for btc and the stock market
bitcoin and US stocks will be tested again as the US bitcoin–crypto/” rel=”nofollow”>Consumer Price Index (CPI) Inflation data will be released on July 11. The long-awaited report is expected to show that inflation in the country is cooling down, further strengthening the argument for interest rate cuts. This development is undoubtedly bullish for these assets, especially bitcoin and the cryptocurrency market in general.
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In the short term, positive inflation data is expected to trigger a rally in the price of bitcoin, which is currently trying to bitcoin-is-ready-to-fly-heres-why/” rel=”nofollow”>recover $60,000 as support. Cryptocurrency analyst Justin Bennett x.com/JustinBennettFX/status/1811041821276946806″ rel=”nofollow”>warned that bitcoin needs to stay above $57,800 or it risks falling to as low as $50,000.
Featured image created with Dall.E, chart from Tradingview.com
