In 2022, the dependence of bitcoin on the US stock market periodically increased.
BTC moved in tandem with the S&P 500 and Nasdaq indicators, but by the end of the year, the correlation began to weaken, according to a report from Arcane Research.
On a monthly basis, the Bitcoin-Nasdaq correlation index fell to 0.29, the lowest level since December 2021. If this trend continues, then the dependence of the cryptocurrency on the shares of the technology sector may become zero, the company’s analysts predict.
The high correlation between BTC and the stock market 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 American IT companies themselves, accumulating bitcoins, is affecting. First of all, this applies to Tesla and MicroStrategy, whose performance is displayed by the Nasdaq index.
Arcane Research attributes the weakening of the correlation between Bitcoin and the stock index to the fact that many crypto companies left the market and filed for bankruptcy. Among them were miners who sold almost all of the mined cryptocurrency.
The Santiment team came to similar conclusions. It points to a weakening of Bitcoin’s dependence on the S&P 500 index in January 2023. For example, this week the shares of technology giants are declining in value, while BTC, on the contrary, is strengthening.
On Friday, the bitcoin exchange rate exceeded $21,000. In weekly terms, the capitalization of the cryptocurrency increased by almost 12% to $406.302 billion.
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