The Correlation Between Bitcoin and Nasdaq Drops to Lowest Level in 1 Year

The dependence of Bitcoin on the US stock market periodically increased last year.

According to a report from Arcane Research, Bitcoin moved in tandem with the S&P 500 and Nasdaq indicators, but by the end of the year, the correlation began to weaken.

On a monthly basis, the Bitcoin-Nasdaq correlation index fell to 0.29, the lowest level since December 2021. The company’s analysts predict that if this trend continues, then the dependence of the cryptocurrency on the shares of the technology sector may become zero.

The high correlation between BTC and the stock market has signaled that the majority of institutional investors viewed digital currency as a risky asset for almost the entire past year.

In addition, the influence of the accumulative policy of the US IT companies themselves, which are accumulating Bitcoins, is having its consequences.