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- The correlation between Bitcoin and NASDAQ 100 has fallen to the lowest level in months.
- BTC and NASDAQ 100 remain in a strong bull trend.
In recent weeks, Bitcoin [BTC] has seen varied price development. This trend has affected the correlation with stock prices, as shown in a recent chart.
The report of Kaiko noted that the correlation between Bitcoin and the NASDAQ 100 has hit record lows in recent months. The observed graph showed that this correlation dropped to about 13%.
What the NASDAQ 100 and Bitcoin correlation are
The NASDAQ-100 is a stock market index consisting of 100 of the largest non-financial companies on the Nasdaq stock exchange.
It is known for its emphasis on technology and includes companies in various sectors such as technology, healthcare, consumer discretionary and more. The NASDAQ 100 is often used as a benchmark for measuring the performance of the technology sector.
A correlation of 13% between Bitcoin and the NASDAQ 100 indicates very weak or almost negligible positive correlation.
The positive correlation coefficient means that when BTC moves in a certain direction, the NASDAQ 100, on average, tends to follow suit.
However, the low magnitude of 13% indicates that this trend is weak. Nevertheless, this situation can offer investors the opportunity to diversify their portfolios.
How Bitcoin and the NASDAQ 100 trended
An examination of the daily timetable chart by AMBCrypto revealed that both Bitcoin and the NASDAQ 100 were in a bull trend. However, a more detailed analysis revealed that their respective profit and loss fluctuations fluctuated.
According to the Bitcoin daily timetable, it experienced a notable price drop over the past seven days.
The chart showed a November 15 postponement marked by a price increase of more than 6%. Unfortunately, this recovery was short-lived as the next day saw a loss of value of around 4%.
Despite these fluctuations, Bitcoin managed to keep its price above $36,000. At the time of writing this article, it was trading around $36,400, reflecting a decline of less than 1%.
Read Bitcoin (BTC) price prediction 2023-24
Additionally, AMBCrypto’s examination of the NASDAQ 100 on a daily time frame revealed a consistent uptrend with fewer losses. The chart showed a smoother pattern of price movements, indicating a robust bull trend.
At the time of this report, the Relative Strength Index line suggested that the NASDAQ 100 was approaching the overbought zone.
