Bitcoin’s Correlation with Nasdaq Remains Strong Despite Bearish Tendencies

A recent report by Wintermute reveals that Bitcoin maintains a strong correlation of 0.8 with the Nasdaq index. However, Bitcoin’s trading behavior displays a bearish tendency, reacting more significantly to market pessimism than optimism. Throughout this year, Bitcoin’s decline on days when the stock market drops has been considerably greater than the indices’ movements, while its gains during market upswings have been smaller. This pattern was last observed in 2022’s bear market.