The correlation between Bitcoin price and the stock market has reached new highs this year. Movements in the macro markets have had a huge impact on the Bitcoin price. But as time goes on, Bitcoin is trying to separate itself from this high correlation. Available data suggest that BTC may have some success in this effort.

According to the views of Best Owie from Bitcoin; There are a number of factors behind Bitcoin's weakening relationship with the stock market. While some of these have been frequently mentioned by experts, others have not been brought to the fore. Bitcoin miner sales formed one of the most obvious differences in this direction. With the fall in BTC price, miners had to sell their holdings due to rising interest rates and rising energy costs.

Another factor has been the largest publicly traded companies selling their BTC holdings. Tesla held about 48,000 BTC, but eventually sold 75% of all its assets. This decrease in Bitcoin holdings accumulating in large companies showed Bitcoin's correlation with the performance decline of institutional companies. There has also been a decline in funds received by crypto companies. These investments are also expected to continue to decline as the market moves towards another tense bear market.

Stock Exchange

Over the past few months, the leading cryptocurrency Bitcoin has maintained a relatively stable correlation with the stock market. One of the most obvious evidence of the correlation is the high growth trend in BTC price when the stock market is gaining. However, August was different for both markets. When the stock market recorded some kind of gain, Bitcoin price responded by outperforming. But in August, the Nasdaq is up 5.77% so far, while Bitcoin only saw a 2.67% gain for the month. This was a different indicator from the natural trend of Bitcoin, which had higher gains compared to the Nasdaq, proving that the correlation between BTC and the stock market is weakening.

Another proof of this is Bitcoin's correlation with risky assets. As mentioned earlier, bitcoin's correlation with these assets hit an all-time high a few months ago, but has now started to decline. Correlation with risky assets, currently at 0.5-0.6 levels, is now close to year lows. Despite this, the correlation with the Nasdaq is still relatively high. Arcane reports the current level as 0.55. So while there is certainly some kind of weakening, these factors are unlikely to cause a complete weakening and divergence from the stock market.