BITCOIN (BTCUSD) & NASDAQ 100 (QQQ) 90-Day Rolling Correlation
The 90-day correlation between $BTC and $QQQ currently stands at 72% (42% is the avg since 2019). 1 of 2 things will occur:
1. The correlation maintains elevated as Bitcoin becomes a stable in asset class allocation strategies by institutions (adoption is here to stay)
2. A divergence of large-cap public equities and Bitcoin occurs. Hard to say what would cause this. Some potential items I am thinking about:
A. U.S. gov or Federal Reserve adopt their own blockchain tech (still a case for Bitcoin due to decentralization)
B. Bitcoin becomes banned in the US (highly unlikely)
C. Volatility becomes so great that only highly speculative investors invest in Bitcoin
Please share in the comments below your thoughts or other reasons why these two assets could diverge.
A falling tide sinks all ships.
1. The correlation maintains elevated as Bitcoin becomes a stable in asset class allocation strategies by institutions (adoption is here to stay)
2. A divergence of large-cap public equities and Bitcoin occurs. Hard to say what would cause this. Some potential items I am thinking about:
A. U.S. gov or Federal Reserve adopt their own blockchain tech (still a case for Bitcoin due to decentralization)
B. Bitcoin becomes banned in the US (highly unlikely)
C. Volatility becomes so great that only highly speculative investors invest in Bitcoin
Please share in the comments below your thoughts or other reasons why these two assets could diverge.
A falling tide sinks all ships.