Analysis: The correlation between Bitcoin and US tech stocks has risen to a near three-year high.
TL;DR
Bitcoin's correlation with the Nasdaq 100 hit a near three-year high of 0.80, reflecting its growing similarity to leveraged tech stocks, while its ties to cash and gold remain minimal.
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PANews reported on November 17th that, according to Bloomberg data cited by The Kobeissi Letter, the 30-day correlation between Bitcoin and the Nasdaq 100 index recently rose to approximately 0.80, the highest level since 2022 and the second highest in nearly a decade. This correlation has remained positive for most of the past five years, only briefly turning negative in 2023. Currently, the 5-year average correlation between Bitcoin and the Nasdaq is 0.54, while its correlation with cash and gold is close to zero. Analysts point out that Bitcoin is increasingly exhibiting the price action of highly leveraged technology stocks.
