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- Bitcoin-Nasdaq correlation hits historic highs, previously followed by 20% price drops in Bitcoin.
- Matrixport links the rise to Q1 earnings repricing and global economic uncertainty.
- Despite risks, Bitcoin regains $85K support as bullish signals and ETF inflows boost short-term outlook.
Bitcoin’s link with Nasdaq volume is once again becoming the center of focus in the markets. The relationship between the two values has yet again risen to a point that was indicative of sharp falls in Bitcoin’s value. Singapore-based blockchain research firm Matrixport revealed new data in this regard.
According to a recent report, the 30-day rolling correlation between Bitcoin proxy IBIT and the Nasdaq is currently at a level reached only twice previously. This was preceded by two other similar drops, the first with a percentage of 20% after similar occurrences in the value of Bitcoin.
The firm believes that this increasing correlation has a lot to do with the following factors. These include an updated change in earnings estimates before the start of the first quarter earnings season, plus increasing volatility of global environments.
Bitcoin Correlation Remains Temporary
However, Matrixport makes sure that at the moment, such strong correlations are usually short-term. The firm also pointed out that in previous periods, the correlation between Bitcoin and the Nasdaq declined right after it reached its high. This implies that a gap in the performance may be next to emerge. Still, there is no definite sign of when or how that could happen.
Even as caution increases, BTC has succeeded in attaining some critical technical levels. The cryptocurrency recently rose back above the $85,000 level that many analysts identify as key to more price appreciation.
The renewal of inflows also extends to spot Bitcoin exchange-traded funds (ETFs). This is even as investors’ confidence rises, especially as Bitcoin begins to regain its stability following some fluctuating trends recently.
Support Levels Strengthen
Markus Thielen from 10x Research issued a positive claim. He pointed out that reversal signals are bullish as the 21-MA is now located above $85,000. This average should be viewed as a reliable support level in case Bitcoin sustains its rate and follows this trend.
Thielen opines that this development could boost the price in the short term, leading to a higher price. Nevertheless, there are caution lights along with green ones in the market, still as it waits for those calming signs. There is also likely to be an influence, both technical and fundamental, especially considering the flow of impacts that affect Bitcoin.
Investors watch ETF flows, economic indicators, and Nasdaq movements carefully. Thus, following history before it could be considered a trend, the next few days might be decisive for Bitcoin prices. In any case, whether Bitcoin is in history’s continuity or rupture is yet to be seen.
