Bitcoin No Longer Correlates with the US Stock Market

The three-month moving average showing the correlation of Bitcoin with ordinary stock exchange indices shows almost zero. This was stated by Block Scholes experts, providing an interview to CoinDesk.

What is known about the correlation

Experts believe that the fall happened because the assets recouped their losses that occurred during the bear market last year. One of the analysts said that at the moment the correlation shows the lowest values since the summer of 2021. Then digital gold was located between 2 peaks, which were observed in spring and autumn.

This situation shows that cryptocurrency traders who focus only on traditional moods and global events can be very wrong in their forecasts.

Recently, some companies have applied to launch a spot bitcoin ETF. This gave an optimistic mood. This conclusion was made by Ilan Solot, head of the cryptocurrency department at Marex.

He believes that the growth of crypto exchanges and crypto funds is divided into three stages:

  1. Preparation to create a tool.
  2. Receiving investments after the start.
  3. The spread of digital assets as a new type of money.

In his opinion, investment products in the near future may be a litmus test for cryptocurrencies.

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