BTC's Negative Correlation With Nasdaq Persists, and History Suggests a Bottom May Be Forming
Bitcoin's persistent negative correlation with the Nasdaq 100, now at -0.43, historically signals potential market bottoms.Summary
Historical analysis indicates that a negative correlation between Bitcoin (BTC) and the Nasdaq 100 often precedes significant market bottoms for BTC. This is the fourth time in five years that the 20-day correlation coefficient has turned negative, currently sitting at -0.43. This divergence is notable because Bitcoin has fallen significantly (up to 36% from its October high) while the Nasdaq 100 has remained relatively stable, trading near its record high. Previous periods of negative correlation, such as in summer 2021, September 2023, and during the yen carry trade unwind, all coincided with meaningful local lows for Bitcoin. While these historical patterns suggest a bottom might be forming now, the exact timing of any subsequent rebound remains uncertain.
(Source：CoinDesk)