The correlation between bitcoin and the Nasdaq 100 technology index has dropped to its lowest level since the beginning of the year below 0.50. This means that bitcoin and US tech stocks move in sync less than 50% of the time.
The decrease in the correlation between these asset classes can be explained by the weaker dynamics of cryptocurrencies: since the beginning of the year, bitcoin has fallen in price by 55.5%, while the Nasdaq 100 has fallen by “only” 26.5%, i.e. two times less before. And the weak dynamics of cryptocurrencies, in turn, is explained by the increase in rates in the United States, which puts the strongest pressure on the most speculative assets.