Tech
Bitcoin and Technology Correlation Collapses Due to Excess Supply
After trading nearly in tandem for the past few months, Bitcoin’s correlation with rising U.S. stocks is collapsing under the weight of too much supply and not enough demand for the cryptocurrency.
The 90-day correlation coefficient between Bitcoin and the tech-dominated Nasdaq 100 index fell to 0.21 on Tuesday, its lowest level since early May. It has fallen more than 50% in the two months. A coefficient of 1 means the assets are moving in tandem, while minus 1 would mean they are moving in opposite directions.