The first cryptocurrency and technology stocks are trading together. The correlation between the value of BTC and various stock market indexes reached 0.59 at the end of last week.
According to TradingView, the 90-day correlation between Bitcoin and the S&P 500 Index hit 0.59 on Friday, September 9, reflecting a high level of correlation.
Notably, the correlation between BTC and tech stocks was at 0.44 on September 5. However, the indicators increased by 34% amid concerns about rising inflation.
Over the last 30 days, the correlation between BTC and the NASDAQ stock index has doubled, reaching a value of 0.62. And the correlation between the S&P 500 Index and Bitcoin’s price reached 0.59. However, stocks of technology companies such as Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN) have been falling rapidly in the past few weeks, along with the value of BTC.
The correlation value is calculated using a mathematical formula that considers cryptocurrency asset prices and stock market indexes. The perfect synchronization of the markets is indicated by 1; values above 0.7 show a very strong correlation; values from 0.5 to 0.7 reflect a high level of correlation, and values below 0.3 mean a low correlation.
Riyad Carey, Blockchain Analyst at Kaiko, noted that the correlation between BTC and stocks of some tech companies will strengthen as the Federal Reserve (Fed) tightens its policies.
Analysts at the International Monetary Fund (IMF) say the correlation between virtual assets and financial markets is growing rapidly. And some recent studies have shown that cryptocurrencies, stocks, and commodities share a similar risk profile. At the same time, BTC’s market behavior resembles that of U.S. Treasury bonds and commodities like gold and oil.
