Bitcoin (BTC) has recently displayed a significant shift in its correlation with the Nasdaq (NDX) index. The historical correlation between BTC and the tech-heavy equity index on Wall Street, which has remained strong for the past four years, has now dropped to zero. This divergence has been analyzed by research provider Fairlead Strategies, who have concluded that the 40-day correlation between the two now stands at zero.
Correlation values are determined by a mathematical formula that examines the price movements of both the index and BTC over time. A correlation above 0.5 indicates a moderately strong positive relationship, while readings above 0.70 suggest a robust connection. Conversely, negative figures below -0.5 indicate a lack of correlation.
