Connect with us
Active Currencies 13971
Market Cap $2,451,472,450,916.15
Bitcoin Share 51.71%
24h Market Cap Change $5.02

Bitcoin: A new kind of ‘low’ after BTC’s correlation with tech stock hits fever pitch 

2min Read

Share this article

After days of clinging to the $40k mark for dear life, it appears that Bitcoin is finally making a recovery. As if on cue, most of the top 30 cryptos also found their way into greener pastures. At press time, the king coin was trading at $41,325.34 after rising by 1.17% in 24 hours and rallying by 3.03% over the past week.

A love triangle: Bitcoin/tech stock/gold

This is good news for bulls, without a doubt, but one disclaimer applies. A report from Arcane Research urged investors to remember that Bitcoin’s 30-day-correlation to tech stocks had increased to a level last seen in the summer of 2020. In fact, Bitcoin’s 30-day-correlation to Nasdaq was 0.70. This means that obstacles in the tech sector since the winter of last year have influenced the crypto-market as well. However, the report noted that such a high level of correlation is not likely to last.

On the other hand, Bitcoin’s correlation to gold fell sharply and it is now, in fact, close to all-time-lows. The 30-day correlation clocked in at -0.45.

Get a grip, BTC

So, what do the following days have in store for the flagship coin? According to TradingView’s Relative Volatility Index [RVI], volatility is on the upside. This is a good sign for those who want to see Bitcoin turn its current resistance levels into support.

Source: Trading View

Despite this though, investors might not exactly be watching the king coin’s movements with bated breath. Santiment data suggested that Bitcoin’s social volume is being pressed down as BTC continuously moves within the $38,000 and $42,000 range.

On that note, what are the most influential investors – or whales – getting up to? When looking at whale transactions worth over $100,000, these have been slowly declining since late March 2022. For the moment, it seems activity is on a downtrend.

Source: Santiment

Indeed, this appears to be the trend across the Bitcoin market as velocity hit a startling low of 1.602. This is a sign of sharp decline in coin-related activity.

Source: Santiment

Bitcoin, meet Marmite

That being said, the current circumstances could soon change as Australia is reportedly due to get its first Bitcoin ETF. This development might come as soon as next week.

Interestingly, the Australian Financial Review reported that the ETF belonging to Cosmos Asset Management is planning to instead invest in Canada’s first Bitcoin spot ETF – the Purpose Bitcoin ETF – launched in 2021.

Share

Sahana is a full-time journalist at AMBCrypto. She has a Masters in Journalism and her areas of study include crypto-regulation, digital society, privacy, and intersectionality. Ask her about film photography and philately.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.