The Bitcoin Stock Market correlation has always been a central issue of discussion in the crypto market. In fact, the correlation between the two has grown steadily through the years. On various occasions, both the markets have affected each other in various aspects. However, the effect has not always been positive. In fact, on various occasions, the effects have been negative as well.
It is true that the Stock Market correlation has impacted the price of Bitcoin in the recent past. In fact, the recent decline in the price of Bitcoin may also safely be assigned to the impact of this correlation. However, in recent times, Bitcoin is striving to put an end to this long-standing correlation. Though the market correlation has grown more prominent during this present year, it seems that Bitcoin has ultimately achieved some success in decoupling itself from this correlation.
If you wish to know more about it, then this article is the perfect stop for you. Therefore, keep reading this article for more details on the decline of the correlation between Bitcoin and the Stock Market.
What Factors are Leading The Separation?
It is really difficult to locate one particular factor behind the weakening of the Bitcoin Stock Market Correlation. In fact, there are many such factors. One such factor is Bitcoin miner sell-offs. Recently, the price of Bitcoin has dropped greatly. With this, the miners are selling off Bitcoins rapidly. In addition, the interest rates are on the increase and energy prices are also rising. All these factors have contributed to the weakening of the Stock Market Correlation.
Yet another factor is the selling off of BTC held by Tesla. Tesla had previously held 48,000 BTC. They have sold around 75% of the total possessions. There are many other big companies which are letting go of their huge BTC possessions. This is yet another factor leading to the decline of the Stock Market Correlation. Moreover, the funding of crypto companies has also declined.
The Bitcoin Stock Market Correlation has been a really strong one. In fact, when the stock market is on the rise, the Bitcoin market also increases. However, in recent times, the gain of the Bitcoin market has come down relatively.
Therefore, the relationship between Bitcoin and Stock Market is on the decline. There are several factors that have combined to lead to the downfall of the Stock Market Correlation.