Bitcoin's correlation with the Nasdaq index has reached 70%, creating a risk of significant price decline according to historical data.
Current Market Situation
Currently, Bitcoin's correlation with the Nasdaq index is about 70%. Analysts from Matrixport assert that such a correlation has been observed only twice before significant price drops in Bitcoin, exceeding 20%. Current economic uncertainties and tariff discussions have led Bitcoin to move in a similar trajectory with tech stocks.
Historical Predictions
Despite the current strong correlation with Nasdaq, historical data suggest that this trend may not last long. According to Matrixport, past instances of such correlation preceded significant price declines. If past trends repeat, a notable shift in Bitcoin's movement relative to Nasdaq could occur.
Bitcoin's Technical Indicators
Despite historical trends, Bitcoin's technical indicators suggest underlying strength. Recent inflows into exchange-traded funds have supported its price above $85,000. According to Markus Thielen from 10x Research, the current 21-day moving average is $85,200, signaling possible upward momentum. These signals suggest that Bitcoin could maintain its strength despite past correlation patterns.
Bitcoin remains in a support area, with investors hoping for its independent movement. The following weeks will determine whether it follows historical trends or forges its own path.
