Nasdaq Correlation Drops to Zero as Bitcoin Exceeds $47,000! What Does It Mean for BTC?

SEC’s spot Bitcoin ETF Although it was considered certain that their applications would be approved, last week matrixport A report that approval may be delayed by BTC‘It caused the price to drop from $45,000 to below $41,000.

BTC, which subsequently moved in a horizontal range, started to rise and exceeded $ 47,000 after the updates of the applicant companies, including ETF transaction fees.

With this rise of Bitcoin, Nasdaq (NDX) separated from its correlation with . Accordingly, this beautiful rise of BTC also reduced its 40-day correlation with the Nasdaq stock market to zero.

Speaking to Coindesk at this point, Fairlead analysts led by Katie Stockton He said a correlation value above 0.5 indicates that the two assets are in harmony, while a value above 0.7 indicates a solid relationship.

Analysts also believe that figures of 0.5 or lower BTC He added that it showed that the correlation between Nasdaq and Nasdaq was weak or ended.

The BTC-Nasdaq correlation, which has been regularly positive since the beginning of 2020, reached its peak at 0.8 in the bear season that started in 2022.

Evaluating the correlation falling to zero, analysts said that the deterioration of the correlation means that Bitcoin can now act as a portfolio diversifying asset, and they expect Bitcoin to maintain this situation against Nasdaq for a while.

“The latest divergence between Bitcoin and Nasdaq can be explained by the fact that the crypto market has been squarely focused on expectations for a spot bitcoin ETF launch in the US since October.

We think Bitcoin and NDX correlations will likely remain low in the coming months, given the opportunity for spot Bitcoin ETF approval and events such as the halving in April.

“Additionally, risk assets generally see lower correlations in bull markets than in bear markets.”

*This is not investment advice.