![]() ![]() The correlation between Bitcoin and stocks has further declined across the past week with the Nasdaq correlation falling to 0.77 and the S&P falling to 0.75. Stocks began to tick lower across recent weeks, closing the quarter at detrimental lows, with UBS noting that Bitcoin abandoned its typical beta of 3x to major US stock indices that dropped twice as much during September. However, it appears that Q4 will cast a similar dismal outlook for the stock market, all whilst cryptocurrencies begin to rebound. Yet, this decline has extended throughout the entirety of 2022 for the US stocks market, with the Nasdaq 100 dropping 33% and the Dow Jone Industrial Average losing more than 20% across the entire year, with Q3 bleeding the markets at an unprecedented rate. Over the past few weeks, the entire global economic stage has descended into a bearish landscape, including the likes of DeFi and TradFi (traditional finance) respectively. For weeks now, analysts have begun to speculate that Bitcoin’s correlation to the stocks and bonds market is progressively weakening, furthered by the fact that the US stock market has witnessed the longest run of quarterly declines since the 2008 financial crisis. ![]()
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