Bitcoin and U.S. Equities Exhibit Decreasing Correlation Amid Market Changes
Recent price movements indicate a potential weakening correlation between bitcoin and U.S. equities:
- The iShares Bitcoin Trust (IBIT) rose 0.46% while the Nasdaq 100 fell over 3%.
- Strategy (MSTR), a bitcoin-levered asset, increased by 0.30%, contrasting with declines in major tech stocks.
- Throughout the day, correlations fluctuated; both assets declined during Fed Chair Jerome Powell's speech but bitcoin later recovered above $84,000.
- Powell's hawkish comments on inflation and the absence of a "Fed put" for stocks unsettled markets.
- The “Fed put” theory suggests the Fed would intervene during downturns, a support bitcoin does not have.
The situation raises questions about the future relationship between bitcoin and traditional equity markets.