Arcane Research: Correlation Between Bitcoin and Tech Stocks Hits Highest Level Since July 2020

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Analysts from Arcane Research have said that the correlation between Bitcoin and the Nasdaq Composite index has reached its highest level since July 2020.

A similar indicator (30-day moving average) between the cryptocurrency and gold has fallen to a historical low, with the dollar – to a minimum since March 2020.

The company experts have explained such dynamics by the expectations of tightening of the Fed’s monetary policy. The dollar strengthened against other currencies amid forecasts of less aggressive actions by the central bank of other countries in response to inflation.

Rising borrowing costs are leading to a downward revision in the trajectory of high-tech stocks. The experts have emphasized that the growth of the price relationship between Bitcoin and the Nasdaq Composite index reflects the belonging of BTC to the category of risky assets in the eyes of institutional investors. They have doubted the correlation would remain at its current high values.