Bitcoin vs. Nasdaq – An Interesting Correlation

Bitcoin vs. Nasdaq – An Interesting Correlation
фото показано с : coinjournal.net

2023-2-21 21:02

Bitcoin and the Nasdaq 100 index have a positive correlation The two markets’ performances offer a way to trade Bitcoin Volatility is key in interpreting the positive correlation

Bitcoin and the cryptocurrency market gained in popularity in a relatively short period. Since its birth, Bitcoin has been adopted by institutional investors, making its price action closer to traditional markets.

As such, it positively correlates with the stock market, particularly with the Nasdaq 100 index. As seen below, buying or selling Bitcoin or buying or selling the Nasdaq 100 index was basically the same trade in the last two years.

However, such charts are misleading. While correct, the chart above ignores the increased volatility in the cryptocurrency market, one that requires special money management skills from crypto retail traders.

The positive correlation suggests more upside for Bitcoin

An interesting perspective appears if we take into perspective the two markets’ volatility. The chart below shows the last two years’ performance for both – Bitcoin delivered +242.42% while the Nasdaq 100 +41.89%.

BTCUSD chart by TradingView

Both performances are impressive, especially if we consider the 2022 bear market. Bitcoin topped when the Nasdaq 100 index topped, and then the market collapsed as investors fled the tech sector and the cryptocurrency market.

Judging by the positive correlation, one thing is sure – the closer the two markets’ performance is, the more appealing it is to buy Bitcoin. Since the end of 2020, the gap between the two performances has never been so narrow as in late 2022.

In other words, the rally seen in the first trading weeks of 2023 should not surprise anyone, given the nature of this correlation. As the tech sector bounced from the lows, so did Bitcoin. Only that Bitcoin’s rally outperformed the Nasdaq 100 index’s rally because of the historically higher volatility.

To sum up, such a chart is useful when trading Bitcoin. The closer the two performances are, the bigger the case for buying Bitcoin.

On the contrary, as Bitcoin outperforms Nasdaq, the bigger the case for selling Bitcoin.

The post Bitcoin vs. Nasdaq – An Interesting Correlation appeared first on CoinJournal.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 70178.32 (+0.01%)
Объем 24H $46.914b
Изменеия 24h: -1.81 %, 7d: 14.02 %
Cегодня L: $69532.35 - H: $70311.19
Капитализация $1382.622b Rank 1
Цена в час новости $ 24945.67 (181.32%)

bitcoin correlation nasdaq positive interpreting volatility cryptocurrency

Источник: coinjournal.net

bitcoin correlation → Результатов: 126


Bitcoin Correlation With Wider Crypto Market Nears ATH As Investors De-Risk

Bitcoin correlation with Ethereum and the wider crypto market is now approaching the all-time high value as investors have taken a risk-averse approach recently. Ethereum And Other Altcoins Have Increasingly Started Following Bitcoin In 2022 As per the latest weekly report from Arcane Research, BTC’s correlation with ETH and altcoins is nearing the ATH set […]

2022-3-17 22:00


Bitcoin’s Correlation With S&P 500 And Nasdaq Is On The Rise As Markets Await Fed’s FOMC Meeting

Meanwhile, Bitcoin’s correlation with gold has been mostly negative as the traditional safe-haven trades around $1,785 per ounce, down 14% from the $2,075 ATH hit in August 2020. The post Bitcoin’s Correlation With S&P 500 And Nasdaq Is On The Rise As Markets Await Fed’s FOMC Meeting first appeared on BitcoinExchangeGuide.

2021-12-14 16:29


Фото:

Bitcoin’s Safe Haven Narrative Revived As Correlation To Gold Hits ‘Levels Never Seen Before’

Bitcoin’s status as a safe haven almost became invalidated as the crypto-asset moved in lockstep with the United States equities in recent weeks. However, a new report by United States investment firm VanEck, reveals that bitcoin’s correlation to gold has significantly increased in 2020 due to the recent coronavirus-driven market downturn. The increased correlation to […]

2020-4-5 10:59


Фото:

Bitcoin’s Correlation to Traditional Markets Could be Problematic, Analyst

Author and financial analyst, Timothy Peterson, believes that Bitcoin’s growing correlation to Japan’s MSCI could end badly if traditional markets sharply correct. Bitcoin Correlation in Japan’s Markets Timothy Peterson, the author of Metcalfe’s Law as a Model for Bitcoin’s Value, recently tweeted a chart comparing the MSCI Japan in USD to Bitcoin in JPY from July 2014 until July 2019.

2019-7-16 22:00


Cryptocurrency Bear Market Blues: How To Manage Bitcoin Investments During Slow Times

Bear Market Leads to the Rise in Crypto Correlation Recent analysis shows that levels crypto correlation have greatly increased lately, with Bitcoin (BTC) as a ringleader. Bitcoin Controls The Prices Of Other Coins One of the biggest differences between cryptos and conventional shares, stocks, and similar financial products lies in the fact that their prices […]

2018-8-11 01:15


Bitcoin, Litecoin, EOS, Stellar, and Tron Technical Analysis: August 8th

It's A Double Digit Loss For Bitcoin and Altcoins A simple six percent drop in Bitcoin (BTC) prices and it’s a capitulation for altcoins thanks to their sometimes beneficial direct correlation. EOS, Stellar Lumens, Litecoin and Tron are not only trading below key support lines as mentioned in previous altcoins technical analysis, but have confirmed […]

2018-8-8 18:37


дальше еще 77 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

Crypto gambling — how does the future of secure gambling look?

Online gambling is a huge part of the casino world, but there is a small percentage of players who worry about its security — welcome, cryptocurrency casinos. It’s 2024, and although crypto casinos are nothing new, there is a wide range of some of the huge household names now utilizing this form of payment to […] The post Crypto gambling — how does the future of secure gambling look? appeared first on CoinJournal.

Crypto price prediction: Floki, BitBot, Arweave

Cryptocurrency prices did moderately well last week as investors embraced a risk-on sentiment in the financial market. Bitcoin jumped to above $67,000 for the first time in over a month while BitBot continued its token sale, raising millions of dollars.

Bitcoin still struggling around $61k: Will it dip lower?

Key takeaways Bitcoin continues to struggle below $62k and could plunge lower in the short term. Bitbot has raised $3. 3m so far, with only two stages of the presale left. Bitcoin stays below $62k Bitcoin has been struggling in recent weeks and could record further losses if the market condition persists.

AEVO, Arbitrum, Render token unlocks near as BitBot gains momentum

Popular cryptocurrencies are on edge as investors wait for their upcoming token unlocks that will lead to more dilution. Arbitrum’s ARB token was trading at $1 on Sunday, down by over 58% from its highest point in 2023, and is near its lowest swing since December 1st last year.

Crypto fear and greed index slips as the BitBot raises $3M

A sense of fear is creeping up in the cryptocurrency market as investors focused on the upcoming Federal Reserve decision. The closely-watched crypto fear and greed index has crashed from the extreme greed zone of over 80 to the neutral phase of 58.