Bitcoin's correlation with Nasdaq weakens, reaches lowest level in five years

Bitcoin has historically shown a strong correlation with U.S. equities, particularly the Nasdaq, but this relationship has weakened in recent months, CoinDesk reported. According to TradingView data, the 30-day correlation between Bitcoin and the Nasdaq is currently just 0.46, marking one of the lowest levels in five years, with a negative correlation even observed in September. Back in 2021 and 2022, Bitcoin and the Nasdaq moved in tandem most of the time, rising and falling together. This trend continued into early 2024 but shifted after March when Bitcoin entered a consolidation phase, ranging between $50,000 and $70,000, while the Nasdaq continued to rise. Since Donald Trump won the U.S. presidential election in November, Bitcoin has rallied to new highs. However, the Nasdaq has since stagnated, highlighting a growing divergence between the two assets. Meanwhile, the 30-day correlation between Bitcoin and Ether, which once was strong, has also now dropped to just 0.35, representing the second-lowest level ever recorded.