Experts say Bitcoin has lost correlation with the US stock market

The 90-day moving average of Bitcoin’s correlation with traditional U.S. stock market indices—the S&P 500 and Nasdaq—has fallen to nearly zero. Analysts from Block Scholes told CoinDesk.

Analysts say the decline reflects both assets having priced in losses from last year’s bear market.

“The correlation is currently at its lowest level since July 2021, when Bitcoin sat between two peaks in April and November,” said Andrew Melville, an analyst at Block Scholes.

Such a development means crypto traders who rely solely on traditional market sentiment and macroeconomic events may see their forecasts diverge.

Recent filings by BlackRock, Valkyrie, Fidelity Investments, WisdomTree and Invesco for spot Bitcoin-ETF have injected optimism into the crypto market, отмечает Ilan Solot, head of the digital assets division at Marex Solutions.

According to him, the development of crypto-based exchange-traded funds can be broken into three parts: preparation for creating the instrument, capital inflows after launch, and subsequently the adoption of cryptocurrency as a new form of money.

“The flow of investment products in the coming months could be the litmus test for digital assets,” added Solot.

In May, Kaiko noted a weakening in the correlation between Bitcoin and Ethereum—the 30-day moving average of the correlation fell to 0.78.