Bitcoin finally decorrelating from stocks?
Bitcoin finally decorrelating from stocks?
novembre 04 2022

Bitcoin decorrelating form stocks? ↩️↪️

Since the beginning of 2022 and all its hardships, Bitcoin was closely following equity markets in their price movements, reacting to every macro event: interest rate increase, new inflation or employment figures…

This means that for many investors both these asset types were “risk-on”, and directly linked to the monetary policy and overall economic situation.

This trend is changing now. For several months already, the instances when BTC goes in the opposite direction from stocks, or reacts less eagerly, are multiplying. 30-day correlation between Bitcoin and NASDAQ has fallen to its lowest since January, and the divergence from S&P500 is even bigger.

This Wednesday’s Fed announcement is just another example. Its fourth interest rate increase did not fail to stir all markets, but while Bitcoin dipped and bounced back, S&P500 continued dipping.

What does this mean? 🤨

Bitcoin is in the process of decoupling from the stock market . The economic shock wave is passing (or at least people are getting used to it), and the differences between stocks and crypto are coming to the forefront.

This is a good news for Bitcoin, which starts to look as if it had mastered enough courage to finally break the $21k threshold 👊