According to data from CoinMarketCap, the correlation between bitcoin and the Nasdaq 100 – a popular benchmark that tracks stocks in the region – has dropped to its lowest level since early 2018. Right now, Bitcoin is trading at the lows. has a 48% correlation with the Nasdaq 100, down from about 70% at its September highs.
Bitcoin's low correlation with the Nasdaq 100 could be a sign that investors are becoming more confident in the cryptocurrency as an asset class and its ability to keep up with traditional financial markets.
The drop in correlation could also be due to bitcoin becoming less volatile than before. The Crypto Volatility Index (VIX) measures how much stocks move when they are predicted to move a certain way on a given day. On June 30, the VIX hit its lowest level since March 2017, signaling that traders have become more confident about the short-term outlook for cryptocurrencies over time.