Bitcoin’s Correlation With Tech Stocks Reemerges Again
ETFs have spurred talk of Bitcoin now being a growth asset
Proponents have long touted the coin as an uncorrelated asset
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Bitcoin’s Correlation With Tech Stocks Reemerges Again
ETFs have spurred talk of Bitcoin now being a growth asset#BTC #stocks #etfs pic.twitter.com/8FWrDHFwXl— The_Journalbiz (@the_journalbiz) May 17, 2024
Bloomberg chart
The token has been trading as such as of late. The 90-day correlation coefficient of the digital currency and the tech-heavy Nasdaq 100 index reached 0.46 this week, the highest level since late August.
Bitcoin was lumped in with other speculative investments during the run-up of the Federal Reserve’s last tightening cycle, slumping on expectations higher interest rates would damp the risk appetite.
Now with optimism growing again that borrowing costs could soon be heading lower, advocates of the biggest cryptocurrency are saying its more akin to high-growth assets such as the shares of technology companies.
Bitcoin surged after the ETFs went live in January, reaching a record of almost $74,000 in March, before paring gains as demand for the investment vehicles began to cool. The token rose about 1.4% on Friday to around $66,200, and is up almost 10% this week. Bitcoin has jumped about 58% this year, compared with an 11% increase in the Nasdaq 100.
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