In accordance with BitJie, Bitcoin (BTC) has maintained strong momentum with a high correlation of 0.8 to the Nasdaq 100 index. However, recent price movements show that Bitcoin only follows the index during downturns. Wintermute reported that Bitcoin reacts more mildly when the stock market rises but experiences sharp swings in the same direction during declines. The report noted that Bitcoin retains a high beta characteristic, but only in the downward direction. Positive skew days have hit a 365-day rolling average low since the 2022 bear market. Wintermute attributed this trend to a shift in institutional and retail attention toward stocks, with the Nasdaq 100 attracting more dollar risk preference than crypto. Since the Fed began cutting rates on September 17, Bitcoin fell 18% while the Nasdaq 100 rose 3.7%. The report also cited reduced ETF inflows, stablecoin issuance stagnation, and compressed market depth as factors widening performance gaps. Bitcoin recently fell below the 100,000 USD level, trading around 95,000 USD with a 3.5% drop in the past 24 hours.
Bitcoin-Nasdaq Correlation Intensifies During Market Downturns
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