Bitcoin (BTC), after its recent price rally, has further differentiated its correlation with technology stocks this June, marking an indication that cryptocurrency assets are carving their unique path. More specifically, according to a blog post published by crypto research platform Kaiko on June 26th, the correlation between BTC and the Nasdaq 100, which tracks top US stocks, has retreated to approximately its lowest level in almost three years in June.
Currently, the correlation between the two asset classes is merely at 3% this month, following Bitcoin’s significantly stronger performance compared to the Nasdaq 100 during this period. Specifically, the leading cryptocurrency gained almost 14% in value in June, while the broader tech index only saw gains of 3%. Compared to 2022, this movement represents a sharp decline in the correlation, which averaged 60% last year.
Bitcoin and the ETF Applications
After dipping below $25,000 mid-month due to intensifying regulatory pressures in the U.S., Bitcoin’s price has exhibited a sharp recovery since June 15. On that day, the world’s largest asset management firm, BlackRock (NYSE: BLK), submitted an application to launch a spot-Bitcoin exchange-traded fund (ETF). This move was mimicked by other traditional finance companies such as Invesco, Valkyrie, WisdomTree, and most recently HSBC. These actions triggered a rise in optimism about potential institutional crypto adoption, pushing BTC above $30,000 for the second time in 2023.
Bitcoin Price Analysis
At the time of writing, BTC was trading at $30,250, down 0.42% over the last 24 hours. Over the past week, the cryptocurrency has gained roughly 15%, and since the start of the year, it has appreciated by more than 83%.
Following the most recent rally, prominent crypto market expert Michaël van de Poppe mentioned that Bitcoin managed to stay above the critical 200-week exponential moving average (EMA), a crucial region for BTC. Additionally, the analyst, noting that a former resistance area is now acting as support for the cryptocurrency, emphasized that we could witness another rally for BTC, possibly driving it to the $38,000 level.
