Bitcoin's Shifting Market Behavior: Correlation with Tech Stocks Amid Capital Outflows
Bitcoin's Shifting Market Behavior: Correlation with Tech Stocks Amid Capital Outflows
This article investigates the reasons behind persistent capital outflows from the crypto market, highlighting a strong correlation between Bitcoin's trading patterns and those of US software stocks. This new perspective suggests that Bitcoin is behaving more like a traditional tech asset than its traditional 'digital gold' narrative, even as private credit increasingly influences the market.
Positive internal factors such as ETFs and DATs fail to fully explain why capital has continued to flow out of the market since mid-last year. The correlation between Bitcoin and US software stocks offers a new perspective. Recent data highlights how private credit has come to dominate the crypto market.