Although it is certain that the SEC will approve spot Bitcoin ETF applications, a report by Matrixport last week that approval may be delayed caused BTC to fall from $ 45,000 to below $ 41,000.
BTC, which subsequently moved in a horizontal range, started to rise and exceeded $ 47,000 after the updates of the applicant companies, including ETF transaction fees.
With this rise, Bitcoin broke away from its correlation with Nasdaq (NDX). Accordingly, this beautiful rise of BTC also reduced its 40-day correlation with the Nasdaq stock market to zero.
Speaking to Coindesk at this point, Fairlead analysts led by Katie Stockton said that a correlation value above 0.5 indicates that the two assets are in harmony, while a value above 0.7 indicates a solid relationship.
Analysts also added that numbers of 0.5 or lower indicate that the correlation between BTC and Nasdaq is weak or over.
The BTC-Nasdaq correlation, which has been regularly positive since the beginning of 2020, reached its peak at 0.8 in the bear season that started in 2022.
Evaluating the correlation falling to zero, analysts said that the deterioration of the correlation means that Bitcoin can now act as a portfolio diversifying asset, and they expect Bitcoin to maintain this situation against Nasdaq for a while longer.
“The latest divergence between Bitcoin and Nasdaq can be explained by the fact that the crypto market has been squarely focused on expectations for a spot bitcoin ETF launch in the US since October.
We think Bitcoin and NDX correlations will likely remain low in the coming months, given the opportunity for spot Bitcoin ETF approval and events such as the halving in April.
“Additionally, risk assets generally see lower correlations in bull markets than in bear markets.”
*This is not investment advice.