As Bitcoin (BTC) takes a small vacation from its previous advances, the link between the biggest cryptocurrency by market capitalization and the stock market is always a source of curiosity among experts, and lately this correlation has touched a record low for more than two years.
In particular, co-founder of crypto market analytics firm Reflexivity Research, Will Clemente, noted in an X post published on October 30 that the weekly correlation of the first crypto asset to the Nasdaq index has decreased to -0.39, the lowest point in 26 months since August 2021.
In contrast to the stock market, which has taken a sharp downturn in recent weeks as investors flee risky investments due to rising macroeconomic challenges, Bitcoin has seen a massive rally that has flipped the market funding of electric vehicle manufacturer Tesla (NASDAQ: TSLA).
However, Dave Weisberger, CEO of cryptocurrency trading platform CoinRoutes, has said that despite geopolitical uncertainties, the macroeconomic outlook for Bitcoin and gold is “as overwhelmingly positive as it could possibly be,” as previously reported by Finbold.
Bitcoin’s price was $34,404 at time of writing, reflecting a daily drop of 0.95% and a weekly drop of 0.42%; nonetheless, the cryptocurrency has managed to maintain its monthly gains of 26.53%, as of the most recent statistics on October 31.
Indeed, some financial experts have used Bitcoin’s historical propensity to move in the same direction as the Nasdaq index as an argument against the diversifying effects of DeFi assets. Recent decorrelation of -0.39 might, however, disprove that theory.
