Bitcoin Correlates with Nasdaq than Gold, Says CryptoQuant Analyst

Bitcoin Correlates with Nasdaq: According to Julio Moreno, Head of Research at CryptoQuant, Bitcoin’s recent price movements are more closely aligned with the Nasdaq index than with gold. In a recent post on X (formerly Twitter), Moreno highlighted that Bitcoin (BTC) currently has a 30-day correlation of +0.39 with the Nasdaq, while its correlation with gold has dropped to -0.4. These figures suggest that Bitcoin is behaving more like a risk-on asset similar to tech stocks, rather than as a safe-haven asset like gold.

Bitcoin’s Shifting Correlations

Moreno’s analysis shows that Bitcoin’s behavior has evolved in the current macroeconomic environment. While BTC was once viewed as “digital gold” due to its perceived potential as a hedge against inflation and economic uncertainty, its price action now more closely mirrors that of the Nasdaq, a stock index dominated by technology companies. This indicates that investors may be treating Bitcoin more like a risk asset than a safe-haven store of value.

The +0.39 correlation with the Nasdaq highlights a moderately strong positive relationship, meaning that when the tech-heavy index rises or falls, Bitcoin is likely to follow a similar pattern. In contrast, Bitcoin’s -0.4 correlation with gold reflects an inverse relationship, suggesting that BTC and gold are behaving more like opposite assets in the current market climate.

Why Bitcoin is Behaving More Like the Nasdaq

Bitcoin’s growing alignment with the Nasdaq could be attributed to several factors, including:

1. Increased Institutional Adoption: As more institutional investors enter the crypto market, Bitcoin’s price movements are increasingly influenced by broader market trends, particularly those in the technology sector, where many of these investors also hold significant positions.
2. Macroeconomic Conditions: With interest rates, inflation, and global economic concerns influencing markets, Bitcoin has been behaving similarly to risk-on assets like tech stocks, which are sensitive to changes in investor sentiment.
3. Reduced Safe-Haven Appeal: Bitcoin’s historical narrative as “digital gold” is being challenged as it fails to consistently act as a hedge against macroeconomic downturns. Investors may now view gold as a more reliable store of value, leading to Bitcoin’s inverse correlation with the precious metal.

Implications for Investors

For crypto investors, the shifting correlation patterns between Bitcoin, Nasdaq, and gold may influence portfolio strategies. As Bitcoin becomes more correlated with risk-on assets like tech stocks, investors may approach it similarly to high-growth investments, rather than as a hedge during market downturns. Conversely, gold continues to serve as a safe-haven asset during times of economic uncertainty, meaning investors might diversify between both to balance risk.

Conclusion: Bitcoin’s Role in the Market Evolves

As noted by Julio Moreno, Bitcoin’s current correlation patterns suggest that it is behaving more like the Nasdaq than gold, reflecting its status as a risk-on asset rather than a safe-haven store of value. This evolving dynamic is crucial for investors seeking to understand Bitcoin’s role in their portfolios as the cryptocurrency continues to mature.

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