Data analysis platform Arkham announced the Bitcoin holdings of Tesla and SpaceX. Meanwhile, as with previous bull runs, Bitcoin’s latest rise coincides with a burst of tech optimism on Wall Street. So it makes sense for investors to keep a close eye on a potential decline in the Nasdaq-S&P 500 ratio.
Arkham: Tesla and SpaceX jointly own 19,800 Bitcoins
Data analytics platform Arkham confirms Tesla and SpaceX’s Bitcoin holdings. Tesla currently holds 11,510 BTC (about $780 million) in 68 addresses. SpaceX has 8,290 BTC (about $560 million) in 28 addresses. Arkham confirmed that on-chain fund flows match Tesla and SpaceX’s financial statements. Tesla purchased $1.5 billion worth of Bitcoin in January 2021. Additionally, he sold Bitcoin in two transactions. These are: BTC sales worth $272 million in the first quarter of 2021 and BTC sales worth $936 million in the second quarter of 2022.
This Bitcoin bull run is different in several ways!
cryptokoin.comAs you follow from , Bitcoin has had a strong run. However, this BTC bull run stands out in a few ways. First, as Bloomberg’s Joe Weisenthal explained in his Wednesday newsletter, the crypto community has focused on market flows rather than narratives about how decentralized finance, or Web3, will revolutionize traditional finance. Another factor highlighting this rally is that prices have risen despite signs of strength in the US dollar and Treasury yields, unlike in 2020-21 when both weakened.
But one thing remains the same. As with previous bull runs, the latest rally has been accompanied by optimism for technology stocks on Wall Street and is characterized by a rise in the NDX-SPX ratio, the ratio between the tech-heavy Nasdaq 100 Index and the broader S&P 500. Since the beginning of 2017, Bitcoin and its ratio reached record highs a few weeks ahead of the cryptocurrency. Thus, it moved in lockstep through rallies and declines. BTC broke a record this week, rising above $69,000. This comes after the NDX-SPX ratio hit a lifetime high of 3.6 in late January. This pattern is similar to the one seen in 2020-21.
Bitcoin investors need to watch this rate!
The positive correlation clearly visible in the chart below suggests that the inflow of money into cryptocurrencies, an emerging technology, is at least partly due to, or at least reflects, optimism about the outlook for tech stocks relative to the broader stock market.
According to charting platform TradingView, the 52-week correlation coefficient between BTC and the NDX-SPX ratio was above 0.60. The correlation has been mostly positive since the beginning of 2017. A positive correlation indicates that both variables move in the same direction. Notice how BTC peaked with the NDX-SPX ratio in late 2021. Both entered bear markets in the following months. Additionally, it finally bottomed out in December 2022.
So it makes sense for investors looking for signs of Bitcoin’s advance to keep a close eye on the NDX-SPX ratio. It’s possible that relative weakness in tech stocks could put pressure on Bitcoin and the broader crypto market.
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