According to a new Kaiko analysis, the correlation between Bitcoin (BTC) and the Nasdaq 100 has decreased this month after reaching a high of.8 last month.
While Nasdaq concluded the week with a more than 7% gain, Bitcoin remains in the R336K range. However, bitcoin remains mostly uncorrelated with the asset it has been compared to on numerous occasions, gold.
Currently, the correlation between Bitcoin and the precious metal asset is greater than 50%. However, its association with US dollars has fluctuated between 0 and a negative during the year. 6.
Due to institutional investors’ rising interest in cryptocurrency, the performance of Bitcoin and the Nasdaq 100 has been correlated for some time. However, the recent interest rate hike and fears of a recession appear to have impacted Bitcoin more than tech equities.
On-chain data, according to Kaiko, shows that the current crypto sell-off was sparked by spot traders rather than the futures market.
According to the research, Ethereum (ETH) and Bitcoin trade volume have decreased since the beginning of the year. Volatility began to decline in September 2021, after peaking in May 2021.
However, weekly trade volume and price activity have remained pretty stable and consistent since then.
According to the research, this demonstrates that investors have made a determined attempt to de-risk their holdings. As a result, the drop is not the result of a futures market sell-off.
Furthermore, the funding rates on Bitcoin’s derivatives markets indicate that the futures market was not to blame for the sell-off. Despite the dramatic price decrease, funding rates on BTC perpetual futures have remained steady.
Funding rates are currently 0.005% higher than neutral. If the sell-off was caused by the futures market, it would be bad, similar to Terra’s failure last month.