Bitcoin-Nasdaq correlation reaches critical level, historically tied to 20% crashes

In a Recent post xMatrixport revealed that the correlation carried out of 30 days between Bitcoin Proxy Ibit and the Nasdaq is probably due to factors such as the recent rethink of expectations of profits before the first quarter profits and continuous uncertainty surrounding global economic conditions.

“This correlation reflects the recent rethink of expectations of profits before the profit season of the first quarter, as well as continuous uncertainty and the negative overhang of tariff discussions. Consequently, Bitcoin is negotiated in accordance with the technological sector.”

Matrix

Despite the current trend, Matrixport warns that such high correlations generally do not last long, noting that “such high correlations have historically been short -lived, which suggests that a difference in performance between Bitcoin and Nasdaq can be on the horizon.” The last two times that the correlation has reached this level, the Bitcoin price has dropped by more than 20%, according to data from cryptographic price aggregators.

Although the last correlation activity can indicate Bitcoin potentially decoupled from the influence of the Nasdaq in the near future, there is still no clear calendar or certainty that such a divergence will occur.

Meanwhile, Spot Bitcoin Exchange negotiated funds turned At weekly entries, the BTC retired above the crucial level of support of $ 85,000, which, according to analysts, is necessary for the next leg. Markus Thielen of 10x Research noted in a March 23 report that Bitcoin’s reversal indicators have become bullish, the 21 -day mobile average now at $ 85,200.