{"id":60356,"date":"2022-04-19T17:50:11","date_gmt":"2022-04-19T14:50:11","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=60356"},"modified":"2025-09-05T02:52:10","modified_gmt":"2025-09-04T23:52:10","slug":"arcane-research-bitcoin-tech-stock-correlation-hits-its-highest-level-since-july-2020","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/arcane-research-bitcoin-tech-stock-correlation-hits-its-highest-level-since-july-2020\/","title":{"rendered":"Arcane Research: Bitcoin\u2013tech stock correlation hits its highest level since July 2020"},"content":{"rendered":"

The correlation between Bitcoin and the Nasdaq Composite index reached its highest level since July 2020. These observations Arcane Research analysts<\/a>.<\/p>\n

A similar measure (the 30-day moving average) between the first cryptocurrency and gold collapsed to a record low, with the dollar to its lowest since March 2020.<\/p>\n

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\"Arcane
Source: Arcane Research.<\/figcaption><\/figure>\n<\/div>\n

Experts attributed this dynamic to expectations of tighter monetary policy by the Fed<\/a>. The dollar strengthened against other currencies amid forecasts of less aggressive actions by central banks in other countries in response to inflation.<\/p>\n

The higher borrowing costs are driving downward revisions to the growth trajectory of high-tech stocks. The rise in the price correlation between Bitcoin and the Nasdaq Composite reflects digital gold\u2019s status as a risk asset in the eyes of institutional investors, the analysts noted. They questioned whether the correlation would remain at such high levels.<\/p>\n

Gold currently serves as a hedge against inflation, while Bitcoin-ETP<\/a> are recording outflows. In the first two weeks of April their AUM<\/span> fell by 9 871 BTC. If the current pace continues, the month will see a new all-time low, surpassing July 2021\u2019s outflow of 13 849 BTC.<\/p>\n

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\"Arcane
Source: Arcane Research.<\/figcaption><\/figure>\n<\/div>\n

The current dynamics could also signal the formation of a bottom in the medium term. Experts noted that negative inflows to funds last summer coincided with the end of the correction in digital gold.<\/p>\n

Earlier, BitMEX co-founder Arthur Hayes predicted a drop in Bitcoin to $30,000<\/a> by the end of the second quarter as a result of the Nasdaq\u2019s decline.<\/p>\n

Earlier, Galaxy Digital founder Mike Novogratz warned<\/a> that the leading cryptocurrency would rally again once the Fed pauses its tightening of monetary policy.<\/p>\n

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The correlation between Bitcoin and the Nasdaq Composite has reached its highest level since July 2020. Arcane Research analysts shared these observations.<\/p>\n","protected":false},"author":1,"featured_media":60357,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1874,18,1145],"class_list":["post-60356","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-arcane-research","tag-bitcoin","tag-market-analysis"],"aioseo_notices":[],"amp_enabled":true,"views":"38","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/60356","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=60356"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/60356\/revisions"}],"predecessor-version":[{"id":60358,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/60356\/revisions\/60358"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/60357"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=60356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=60356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=60356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}