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Bitcoin’s correlation to Big Tech near lowest since 2021

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Bitcoin has been moving less in tandem with tech stocks as sentiment around equities and cryptocurrencies diverges. The world’s largest cryptocurrency has been stuck below the $27,000 level this week, while the tech-heavy Nasdaq 100 has climbed 3.5%.

The 40-day correlation coefficient for Bitcoin and the tech gauge slid to 0.19 on Friday, the lowest since April 25. A reading of 1 implies assets are moving in lockstep and minus 1 signifies the opposite.

Before April, the lowest reading was in November 2021. Bitcoin and equities — particularly growth stocks — had been tied at the hip for a while as investor appetite for both boomed in an era of low interest rates.

That has since changed since the start of the year, as uncertainty around the Federal Reserve’s path of rate hikes and the bank collapses in March prompted investors in each market to react differently.

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