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Bitcoin’s Correlation with European Stocks and NASDAQ Declines to Historic Lows

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Bitcoin’s Correlation with European Stocks and NASDAQ Declines to Historic Lows

According to reports, data shows that the 30-day correlation between Bitcoin and European stock markets has fallen below – 0.2, the lowest level in more than two years. In addition, the 30-day correlation between Bitcoin and NASDAQ has fallen to about 0.2, the second lowest level in more than a year (previously below 0.2 in November 2022).

Data: The 30-day correlation between Bitcoin and European stocks fell below – 0.2, hitting a two-year low

Analysis based on this information:


Bitcoin and its relation to the traditional financial market has been a topic of debate and intrigue for some time now. Reports have shown that Bitcoin’s correlation with the European stock market has reached its lowest level in two years, with a 30-day correlation under -0.2. In addition, the 30-day correlation between Bitcoin and NASDAQ has been noted to be around 0.2, which is the second lowest in a year.

Correlation is a statistical measure that depicts the strength of a linear relation between two variables. A correlation of -1 indicates that both variables move in the opposite direction, whereas a correlation of 1 depicts a perfect positive correlation, where both variables move together. The correlation between Bitcoin and the financial market has been analyzed for quite some time, and investors have long been keen to understand its direction and level, as it influences investment strategies and asset allocation.

The decline in correlation between Bitcoin and European stocks and NASDAQ could be seen as a positive sign for the future of Bitcoin. Due to the decentralized nature of the digital currency, it was initially viewed as a safe haven asset, offering investors diversification from traditional investments such as stocks and bonds. However, over the past couple of years, the correlation between the digital asset and traditional investments has been on the rise. This could be due to the increasing mainstream adoption of Bitcoin and its underlying technology.

The recent decline in correlation represents a potential shift in perception, as investors may view Bitcoin as a distanced asset and less dependent on global market conditions. However, it is important to remember that this unique asset class remains highly volatile and that correlation levels can quickly fluctuate. One potential explanation for the decline in correlation could be the European central bank’s adoption of Bitcoin, as it was seen as a positive step towards mainstreaming its use.

In conclusion, Bitcoin’s correlation with European stocks and NASDAQ has dropped to historic lows, which could potentially signal a shift in the digital asset’s perception as a standalone asset class. However, it is vital to remember that correlation levels can change quickly and remain volatile. Investors should perform thorough research and due diligence when considering investments in such assets.

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