Bitcoin deviates from tech shares, while the FTX fallout continues

Von Krypto News Österreich

Bitcoin loosens the correlation of tech shares, while the crypto turbulence continues to romp

Bitcoin deviates from his correlation again with shares, as retailers react to a disappointing winning season and the latest news about the bankruptcy application from FTX.

The rolling 30-day correlation of the largest digital currency with US stocks fell to 0.17 last week-the lowest level since November 2021-before it recovered from Kaiko to 0.4. A correlation coefficient of 1 means that the assets move perfectly together.

"In every other week, after the inflation pressure of the past week, the cryptoma markets had almost experienced a clear upswing, which nourished hope that inflation could reach its peak and the Fed will slow down its monetary policy tightening", wrote Kaiko researcher in a rel = "Nofollow noopener" Target = "_ Blank" href = "https://blog.kaiko.com/crypto-liquidity-in-a-a-alameda-world-5fb2c190f0b"> Note Monday. "While crypto-assets crash, the Nasdaq 100 and the S&P 500 rose by a whopping 8.8 % or 5.9 %." In contrast,

Bitcoin and ether act as narrowly as they have not been for over a year. Both digital assets recorded modest profits on Monday, each adding about 1 %.

Meanwhile, crypto-bound stocks-such as the Coinbase stock exchange, the Mining Group Stronghold and the technology company Microstrategy-recorded strong declines on Monday when the FTX-driven turbulence stopped. Coinbase lost almost 7 % until noon, while Stronghold and Microstrategy add 4 % or 5 %. All three companies are traded on Nasdaq.

"Microstrategy, in which the value of its 130,000 BTC stocks broke up by about $ 500 million in 5 days, recorded the greatest decline in his share prices and ended the week with a minus of 37 %," wrote Kaiko researcher. "The largest BTC system vehicle, Grayscale Bitcoin Trust (GBTC), lost 28 % of its value."

This step contributed to the growing Grayscale discount, which measures the difference between the share prices from GBTC and the market value of the underlying Bitcoin stocks. The discount reached a record low of 41 % Ycharts . Rumors that Alameda Research has significant GBTC positions may have strengthened the sales pressure, analysts said.

While crypto -related trade movements have burdened the technology stocks in the past few days, Big Tech's rally, in which Nasdaq has increased by 6 % in the last five trading days, may only be short -lived.

"Technology and growth stocks have been good at some time recently, but we continue to believe that progress in economic recovery and then higher interest rates will be a headwind for technology and a rotation can be used from growth to substance to reduce overweight in technology, but do not completely give up Super-Cap-Tech involvement," said Tom essaye, founder of Sevens Report Research.

The loosening of the big-tech trade patterns from crypto is a reversal of a month-long trend. In May, the correlation between Bitcoin and the technology -heavy Nasdaq broke through 0.8 for the first time, and Bitcoin's tandem trade with the wider S&P 500 also reached similar levels in early May. In June, the correlation between Bitcoin and the S&P 500 has fell to about 0.5 and since then commutes the information there, according to the information Coin Metrics Data . .

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The contribution "Bitcoin Dianges from Tech Stocks as ftx Fallout Continues" is not a financial advice.