- The decoupling of Bitcoin and Nasdaq stopped as the value of BTC rose.
- BTC’s funding rate remained positive as it traded around $30,700.
Intriguing data from Ecoinometrics revealed an emerging correlation between Bitcoin [BTC] and Nasdaq. This new pattern captivated observers and shed light on BTC’s overall trajectory and sentiment among traders.
Read Bitcoin [BTC] Price Forecast 2023-24
Bitcoin, Nasdaq correlation
Bitcoin’s price correlation to traditional stocks has served as a valuable tool for investors as they construct their investment portfolios. In addition, BTC has emerged as the benchmark against which traditional stocks are measured.
A recent analysis conducted by Ecoinometrics revealed a remarkable phenomenon: BTC and Nasdaq price trends have recently become intertwined.
Source: Ecoinometrics
The chart revealed a period of decoupling between BTC and Nasdaq from about April to June. Before this period, BTC and traditional stock prices showed a similar trajectory.
However, the current BTC price surge fueled by recent developments coupled with the bearish sentiment plaguing the stock has enabled BTC to bridge the gap and overtake the Nasdaq.
Rises and sentiments
The recent wave of applications for a Bitcoin ETF by various financial institutions has led to a notable increase in social buzz around the King Coin in recent days.
Analyzing the daily price trend, it became clear that BTC had experienced a significant increase in value since the news broke.
Source: TradingView
At the time of writing, BTC was trading at around USD 30,700, albeit with a slight drop in value. However, it ended the previous trading session up 3%.
The bull trend was undeniably dominant, as evidenced by the Relative Strength Index (RSI) line moving into overbought territory. In addition, the upward trajectory resulted in more positive sentiment among traders.
According to the graph of the financing rate of CoinGlass, BTC witnessed an increase in positive funding rates on most exchanges. At the time of writing, the funding rate remained positive, indicating a collective bet on further price escalation beyond the current range.
With the arrival of several traditional financial institutions competing for BTC ETF licenses, the price of BTC is poised to continue rising until a correction phase arrives.
BTC’s 30-day MVRV
BTC’s ongoing price trend provided favorable prospects for short-term holders who entered the market before the start of this trend. According to Santiment’s 30-day Market Value to Realized Value (MVRV) statistic, BTC had crossed the zero mark.
How much are 1,10,100 BTC worth today?
This signaled a remarkable shift to profitability. At the time of writing, the MVRV stood at over 12%, representing significant gains for those who hold positions within that time frame.
Source: Sentiment
Furthermore, given the press time state of the 30-day MVRV and BTC’s position within the overbought zone, it is reasonable to anticipate a potential correction.