empty
18.11.2021 11:14 PM
Bitcoin stops behaving like a stock

This week, bitcoin fell by 7% and at some point approached $58,000, while the Nasdaq 100 shows a slight increase. For some, the fact that the pullback did not have wider ramifications shows that bitcoin remains far from the mainstream.

Bitcoin ceases to behave like a stock

The pandemic-era correlation between bitcoin and Nasdaq 100 futures is disappearing. This, coupled with the recent correction, provokes debate about what role the token can play in investment portfolios.

The 30-day correlation between virtual currency and futures has dropped to almost zero in recent days, from a 2021 peak by the end of September of 0.56 - a value that suggests tech stocks and bitcoin often move in tandem. The correlation has generally been positive since February 2020.

Bitcoin is up about 40% since the end of September, surpassing the Nasdaq 100's 11% rise. The stated role of the token as a means of protection against inflation with a sharp increase in prices in the global economy is one of the factors that led to the growth of the digital asset to a peak of almost $69,000 on November 10.

Carsten Menke, head of the new generation research department at Julius Baer in Zurich, believes that the evolution of the relationship between stocks and bitcoin does not harm the arguments that it is a reliable modern means of saving for portfolios.

"The lack of consistent and negative correlation between bitcoin and stocks clearly indicates that bitcoin is not yet a safe haven," he said, stressing that in times of stress in the financial market, it tends to suffer like other riskier assets.

Bitcoin hovered near a key inflection point of $60,000 on Wednesday as traders seemed to restrain the excessive speculation that last week led to a record price for the world's largest cryptocurrency.

The digital currency fell 3.4% before offsetting losses and remaining unchanged. Some observers attribute the recent drop from a record high of $68,991 to profit-taking before the end of the year. But the decline in the number of meme coins such as Dogecoin and Shiba Inu also suggests that cryptocurrencies may "wash away some speculation" by retail traders, analyst Mike McGlone said.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Bitcoin. May 23rd. Smart Money System Analysis

Bitcoin continues to form a bullish trend structure. One could argue whether there are real reasons for a new bullish trend at the moment, but the chart suggests only that—unambiguously

Samir Klishi 20:04 2025-05-23 UTC+2

TRUMP official: crypto community, protests, and politics

On the evening of May 22, 2025, a unique event took place at the Trump National Golf Club in Virginia — a dinner hosted by Donald Trump with the largest

Jurij Tolin 16:49 2025-05-23 UTC+2

Technical Analysis of Intraday Price Movement of Doge Cryptocurrency, Friday May 23, 2025.

It appears that the price movement of the Doge Cryptocurrency on the 4-hour chart is moving above the WMA (21) which has a slope that is going upwards

Arief Makmur 09:04 2025-05-23 UTC+2

Technical Analysis of Intraday Price Movement of Ripple Cryptocurrency, Friday May 23, 2025.

If we look at the 4-hour chart of the Ripple cryptocurrency, it appears to be moving above the WMA (21) which has a steep slope and has successfully broken

Arief Makmur 09:04 2025-05-23 UTC+2

Bitcoin Forecast for May 23, 2025

On Thursday, Bitcoin's price reached the target level of 111,770. The Marlin oscillator appears to be lagging behind the price, giving the impression of a potential divergence — though unconventional

Laurie Bailey 04:45 2025-05-23 UTC+2

Bitcoin aims to hit $120,000? What lies behind its rally and when to expect retracement

On May 22, Bitcoin confidently broke through the $111,888 level, setting a new all-time high of $111,867. Unlike previous rallies marked by retail investor euphoria, this time the market's behavior

Ekaterina Kiseleva 16:12 2025-05-22 UTC+2

Bitcoin extending confident rally

Bitcoin demand appears to be surging, judging by its recent performance. At the time of publication, the BTC/USD pair was trading near 111,200.00, slightly down from today's and the all-time

Jurij Tolin 16:02 2025-05-22 UTC+2

Bitcoin: $115,000 — Next Stop or Bull Trap?

Bitcoin is steadily approaching its all-time high and, according to several analysts, is poised to set a new record. Current levels near $105,000 are more than just numbers — they

Ekaterina Kiseleva 00:58 2025-05-21 UTC+2

BTC/USD Analysis on May 20, 2025

The wave pattern on the 4-hour chart for BTC/USD has been becoming more complex in recent months. We observed a corrective downward structure, which completed its formation around the 75,000

Chin Zhao 11:11 2025-05-20 UTC+2

Technical Analysis of Daily Price Movement of Ethereum Cryptocurrency, Friday May 16, 2025.

If we look at the 4-hour chart, the Ethereum cryptocurrency appears to be moving above the WMA (21) which is a dynamic support where the WMA has a slope that

Arief Makmur 06:09 2025-05-16 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.