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.
Nonetheless, months of persistent selling has failed to shake out the old hands, who are digging in despite a grim economic backdrop. “The holder base of BTC has changed drastically from being heavily weighted towards speculators, which largely came in in 2021, to the near cult-like ‘HODLer’ community which would not sell their BTC in almost any macro circumstance,” said Stéphane Ouellette, CEO at crypto derivatives provider FRNT Financial.
For the foreseeable future, macroeconomics remain the driver of a market that remains highly speculative in nature.