After months of tears and tantrums, bitcoin wants to split up with stock markets.
The correlation, which shows the degree to which the two move in sync with each other over a 30-day period, has hovered above 0.75 for much of the year and at times has approached perfect unison - at 0.96 and 0.93 in May and September."The latter's growth has been somewhat tapped out, and investors are looking for the next growth industry. Bitcoin and crypto is one of those 'next' growth industries," said Santiago Portela, CEO of FITCHIN, a Web3 gaming ecosystem.
Market participation has also dwindled, with the average daily trading volume of digital asset products falling to $61.3 million as of Oct 25, far from the daily volumes of around $700 million seen last November, CryptoCompare data shows. Furthermore, a record 55,000 bitcoin were withdrawn from the largest exchange Binance on Oct. 26, according to analytics platform CryptoQuant showed, flows that typically signal coins are moving to wallets for longer-term storage.
Yet it's anyone's guess whether fickle bitcoin will begin to rally, or slide anew, or if it will swiftly rebound to the embrace of technology stocks.