empty
18.11.2021 11:14 PM
Bitcoin stops behaving like a stock

This week, bitcoin fell by 7% and at some point approached $58,000, while the Nasdaq 100 shows a slight increase. For some, the fact that the pullback did not have wider ramifications shows that bitcoin remains far from the mainstream.

Bitcoin ceases to behave like a stock

The pandemic-era correlation between bitcoin and Nasdaq 100 futures is disappearing. This, coupled with the recent correction, provokes debate about what role the token can play in investment portfolios.

The 30-day correlation between virtual currency and futures has dropped to almost zero in recent days, from a 2021 peak by the end of September of 0.56 - a value that suggests tech stocks and bitcoin often move in tandem. The correlation has generally been positive since February 2020.

Bitcoin is up about 40% since the end of September, surpassing the Nasdaq 100's 11% rise. The stated role of the token as a means of protection against inflation with a sharp increase in prices in the global economy is one of the factors that led to the growth of the digital asset to a peak of almost $69,000 on November 10.

Carsten Menke, head of the new generation research department at Julius Baer in Zurich, believes that the evolution of the relationship between stocks and bitcoin does not harm the arguments that it is a reliable modern means of saving for portfolios.

"The lack of consistent and negative correlation between bitcoin and stocks clearly indicates that bitcoin is not yet a safe haven," he said, stressing that in times of stress in the financial market, it tends to suffer like other riskier assets.

Bitcoin hovered near a key inflection point of $60,000 on Wednesday as traders seemed to restrain the excessive speculation that last week led to a record price for the world's largest cryptocurrency.

The digital currency fell 3.4% before offsetting losses and remaining unchanged. Some observers attribute the recent drop from a record high of $68,991 to profit-taking before the end of the year. But the decline in the number of meme coins such as Dogecoin and Shiba Inu also suggests that cryptocurrencies may "wash away some speculation" by retail traders, analyst Mike McGlone said.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trading Recommendations for the Cryptocurrency Market on May 28

Bitcoin failed to hold above the $110,000 level, while Ethereum again showed decent growth, fueled by news of a possible significant increase in the gas limit per block

Miroslaw Bawulski 10:04 2025-05-28 UTC+2

Bitcoin Remains Within a Range Conducive to Growth

Yesterday, Bitcoin and Ethereum continued to attract demand from traders and investors, maintaining strong prospects for the continuation of the bullish market. Meanwhile, the International Monetary Fund (IMF) stated that

Jakub Novak 09:36 2025-05-28 UTC+2

Technical Analysis of Intraday Price Movement of Bitcoin Cryptocurrency Pairs, Wednesday May 21, 2025.

On the 4-hour chart of the Bitcoin cryptocurrency, there appears to be a Divergence between the Bitcoin price movement and the Stochastic Oscillator indicator, which indicates that in the near

Arief Makmur 08:39 2025-05-28 UTC+2

Bitcoin: A Bet on $300,000 or a Painful Correction? What's Next for the Market

Bitcoin reached $110,000 but failed to sustain the rally throughout the day, continuing its consolidation. Yet this lull is by no means a sign of exhaustion. Behind the scenes, activity

Ekaterina Kiseleva 00:44 2025-05-28 UTC+2

Bitcoin and Ethereum maintain bullish momentum

Despite a short pause, Bitcoin and Ethereum don't appear to be finished with their upward moves. While Bitcoin slightly pulled back during today's Asian trading session, Ethereum has already broken

Jakub Novak 11:03 2025-05-27 UTC+2

BTC/USD Analysis on May 27, 2025

The wave pattern on the 4-hour BTC/USD chart has become more complex. A corrective downward structure completed its formation around the $75,000 level. After that, a fairly strong upward move

Chin Zhao 10:53 2025-05-27 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 27

Demand for bitcoin and ether has continued early this week. Bitcoin remains above the $109,000 mark, while Ethereum is trying to consolidate above $2,600. Yesterday's news that Strategy once again

Miroslaw Bawulski 08:53 2025-05-27 UTC+2

Bitcoin Holds Above $107,000

Bitcoin has resumed its upward movement and already surpassed the $109,900 level after a solid correction to the $106,000 level over the past weekend. The fact that price held above

Jakub Novak 11:35 2025-05-26 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 26

Demand for Bitcoin and Ethereum returned at the beginning of this week. Bitcoin has broken above the $109,000 level, while Ethereum is attempting to consolidate above the $2,550 mark. Yesterday

Miroslaw Bawulski 09:39 2025-05-26 UTC+2

Bitcoin. May 23rd. Smart Money System Analysis

Bitcoin continues to form a bullish trend structure. One could argue whether there are real reasons for a new bullish trend at the moment, but the chart suggests only that—unambiguously

Samir Klishi 20:04 2025-05-23 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.