Menu

Search

  |   Insights & Views

Menu

  |   Insights & Views

Search

Bitcoin and Nasdaq: A Shifting Correlation Story

 

Positive and negative correlation of the Bitcoin with Nasdaq in the long term shows its dynamism in financial markets. For the month of March 2025, correlation between 30-day Nasdaq Composite and Bitcoin was more than 0.50, which shows medium correlation due to large institutional penetration and macro conditions. That it has positive correlation indicates that Bitcoin prices are somehow replicating price movements in the Nasdaq.

Earlier this year in 2025, Bitcoin was negatively correlated with Nasdaq for over 60 days, i.e., assets moving in opposite directions. The negative correlation was a sign of how Bitcoin can decouple with conventional markets, and that it was a good diversification tool. Decoupling in this case is a sign of how Bitcoin can move in the opposite direction of equity market forces in certain cases.

At $87,054, its changing correlation to the Nasdaq (18,188.59) is a testament to its dual existence as hedge and speculation tool. Its investors will be watching macroeconomic circumstances and institutionally driven trends in an effort to be able to anticipate coming reversals of this relationship. The dynamic between these variables will continue to be a prime mover behind Bitcoin's existence as part of investment in general.

 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.