The market has often associated the price behavior of Bitcoin with that of the S&P 500 index. However, Kaiko, a crypto data analysis company, has established that this link will be weakening in favor of the Nasdaq. The finding was presented in a report published by the analytics firm on October 17, 2022.
Kaiko notices a correlation between Bitcoin and Nasdaq
According to its recently published quarterly report, Kaiko finds that Bitcoin would have similarities with Nasdaq. The main stock index of the New York Stock Exchange has suffered from the fluctuations of the stock market in general lately. The cost of consumer prices hit its highest peak in 40 years in the United States while the inflation rate fell. However, there has been some recovery in the market for some time.
This is the same scenario seen for Bitcoin in relation to inflation. The crypto-asset fell like the Nasdaq and the market in general. He went under the $18,000 before rising above $19,000 recently. While the community was expecting a long bull run, the hype surrounding BTC’s rise died down as it did in the equities sector. For the first time since 2020, the Bitcoin’s 20-day volatility reached Nasdaq level in October.
Bitcoin and Nasdaq: two reserve values
When the market is bad, investors tend to turn to the Nasdaq and Bitcoin which they consider as reserve values. Both often show better resistance to the general downside of the stock market. However, the finding of recent weeks is that Nasdaq underperformed in recent US fiat currency run.
The US dollar has gained in value, which is not often a good sign for Wall Street assets. Indeed, the New York Stock Exchange index has dropped 10% because of the strength of the dollar. On the other hand, the Bitcoin showed better resistance to the performance of the US Dollar.
Bitcoin increasingly accepted in the commercial sphere
Contrary to what was done a few years ago, Bitcoin is increasingly used by businesses. Now, it is common to see indications assuring that digital currency is accepted for payments. This is particularly the case in establishments McDonald’s.
Likewise, Google Cloud recently announced that payments by BTC were in study and would now be authorized from the year 2023. Other altcoins will also be accepted such as DOGE and ETH. Also, another institution has joined Bitcoin’s partners.
The BNY Mellon, the largest custodian bank in the world, has announced that it now accepts BTC. The American institution has therefore opened custody services dedicated to investment companies and cryptographic platforms.