# Cryptoverse: Bitcoin wants to break its bond with stocks Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-01 Category: TRADING Category URL: https://financedigest.com/category/trading Meta Title: Bitcoin Seeks Breakup from Stock Markets in Correlation Meta Description: Get the latest insights on Bitcoin's uncoupling from tech stocks and its impact on the market. Subscribe now for more updates! URL: https://financedigest.com/cryptoverse-bitcoin-wants-to-break-its-bond-with-stockshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-01t085003z2lynxmpeia012krtroptp4fintech-crypto-weekly-1736814941065-compressed.jpg) (Our weekly analysis of the wild world of cryptocurrencies. Repeats for additional subscribers) By Lisa Pauline Mattackal and Medha Singh (Reuters) – After months of tears and tantrums, bitcoin wants to split up with [stock markets](https://www.financedigest.com/stocks-up-bond-yields-fall-as-markets-mull-a-fed-policy-pause.html "Stocks up, bond yields fall as markets mull a Fed policy pause"). The cryptocurrency, which has been closely correlated with tech stocks for much of its torrid 2022, is staging one of its strongest [efforts yet to break away](https://www.financedigest.com/turkey-clears-away-rubble-from-earthquake-rescue-efforts-wind-down.html "Turkey clears away rubble from earthquake, rescue efforts wind down"). Its 30-day correlation with the Nasdaq slid to 0.26 last week, its level lowest [since early](https://www.financedigest.com/first-quarter-dash-for-cash-largest-since-early-2020-bofa.html "First quarter ‘dash for cash’ largest since early 2020 -BofA") January, where a measure of 1 indicates the two assets are moving in lock step. The correlation, which shows the degree to which the two move in sync with each other over a 30-day period, has hovered above 0.75 for much of the year and at [times has approached](https://www.financedigest.com/anti-money-laundering-time-to-take-a-new-approach.html "ANTI-MONEY LAUNDERING: TIME TO TAKE A NEW APPROACH?") perfect unison – at 0.96 and 0.93 in May and September. For some crypto backers, any bitcoin break-up from [Big Tech](https://www.financedigest.com/startups-spring-from-ashes-of-big-tech-purge.html "Startups spring from ashes of Big Tech purge") is a sign of strength. The latter’s [growth has been somewhat tapped out, and investors are looking for the next growth industry](https://www.financedigest.com/dry-molasses-products-market-overview-in-depth-analysis-of-market-size-growth-industry-overview-2022-2029-2.html "Dry Molasses Products Market Overview In-depth Analysis of Market Size, Growth, Industry Overview 2022-2029"). Bitcoin and crypto is one of those ‘next’ [growth industries,”](https://www.financedigest.com/oryzanol-market-share-size-analysis-growth-industry-statistics-and-forecast-2028-2.html "Oryzanol Market Share, Size, Analysis, Growth, Industry Statistics and Forecast 2028") said Santiago Portela, CEO of FITCHIN, a Web3 gaming ecosystem. The nascent uncoupling does indeed coincide with a period of comparative calm and consolidation for the teenage cryptocurrency a year after it began its epic nosedive from the heady heights of $69,000 [hit](https://www.financedigest.com/stocks-hit-two-year-lows-sterling-comes-under-fire.html "Stocks hit two-year lows, sterling comes under fire") in November last year. Bitcoin is [hovering near one-month highs around](https://www.financedigest.com/oil-prices-hover-around-2014-highs-supported-by-supply-concerns.html "Oil prices hover around 2014 highs, supported by supply concerns") $20,500 and rose over 5% last week, outperforming the Nasdaq’s 2% gain as dour quarterly results from Microsoft, Alphabet, Meta and Amazon weighed. GRAPHIC – [Bitcoin tests linkage with stocks](https://www.financedigest.com/bitcoin-falls-to-22-month-low-as-stock-markets-tumble.html "Bitcoin falls to 22-month low as stock markets tumble") https://graphics.reuters.com/FINTECH-CRYPTO/WEEKLY/xmpjkgeryvr/chart.png ![](https://www.globalbankingandfinance.com/wp-content/uploads/2022/11/432.jpg) HODLERS HOLDING OUT The crypto [winter has been cold](https://www.financedigest.com/first-winter-cold-snap-tests-french-power-grid.html "First winter cold snap tests French power grid") and hard, though. The [total market](https://www.financedigest.com/lightweight-compact-wheel-loader-market-are-projected-to-total-us-1-64-bn-by-2022-exhibiting-growth-at-2-7-cagr-over-the-forecast-period-2022-2030.html "Lightweight Compact Wheel Loader Market are projected to total US$ 1.64 Bn by 2022, exhibiting growth at 2.7% CAGR over the forecast period 2022-2030") cap for cryptocurrencies has shrunk by more than two-thirds to $984 billion from nearly $3 trillion in November 2021, according to CoinMarketCap.com. Market participation has also dwindled, with the [average daily trading volume of digital asset products falling](https://www.financedigest.com/playground-xyz-study-finds-carbon-emissions-from-digital-ads-fall-by-63-on-average-when-measured-and-optimized-for-attention-time.html "Playground xyz study finds carbon emissions from digital ads fall by 63% on average when measured and optimized for attention time") to $61.3 million as of Oct. 25, far from the daily volumes of [around $700 million](https://www.financedigest.com/supercapacitor-market-size-to-worth-around-usd-5979-67-million-by-2026-tmr.html "Supercapacitor Market Size to Worth around USD 5,979.67 Million by 2026 – TMR") seen last November, CryptoCompare data shows. Nonetheless, months of persistent selling has failed to shake out the old hands, who are digging in despite a grim [economic backdrop](https://www.financedigest.com/sterling-softens-against-murky-economic-backdrop.html "Sterling softens against murky economic backdrop"). The [dollar wealth held in bitcoins](https://www.financedigest.com/dollar-retreats-headed-for-biggest-weekly-loss-since-mid-january-bitcoin-down.html "Dollar retreats, headed for biggest weekly loss since mid-January; bitcoin down") that haven’t been traded for three months or more is at an all-time-high, indicating accumulation by long-term holders or “HODLers”, according to blockchain data firm Glassnode. The [name for that group of diehard crypto investors emerged years](https://www.financedigest.com/praxity-named-association-of-year-at-iab-awards.html "Praxity named Association of Year at IAB Awards") ago from a trader misspelling “hold” on an online forum. Furthermore, a [record 55,000 bitcoin](https://www.financedigest.com/bitcoin-sterling-volumes-spike-to-record-high-as-british-currency-flounders.html "Bitcoin-sterling volumes spike to record high as British currency flounders") were withdrawn from the largest exchange Binance on Oct. 26, according to analytics platform CryptoQuant showed, [flows that typically signal coins are moving to wallets for longer-term storage](https://www.financedigest.com/analysis-russian-gas-flow-too-low-to-fill-europes-storage.html "Analysis – Russian gas flow too low to fill Europe’s storage"). The holder base of BTC has changed drastically from being heavily weighted towards speculators, which largely came in in 2021, to the near cult-like ‘HODLer’ community which would not sell their BTC in almost any macro circumstance,” said Stéphane Ouellette, CEO at [crypto derivatives provider FRNT Financial](https://www.financedigest.com/uk-financial-watchdog-urges-political-support-for-crypto-bans.html "UK financial watchdog urges political support for crypto bans"). The [market is now looking to the Fed](https://www.financedigest.com/us-stock-futures-bonds-rally-as-markets-flirt-with-fed-pause.html "US stock futures, bonds rally as markets flirt with Fed pause") meeting next week for further confirmation of the risk asset/BTC correlation breakdown. NEXT FOR FICKLE BITCOIN? Samuel Reid, CEO of consulting [firm Geometric Energy](https://www.financedigest.com/varo-energy-buys-80-of-dutch-biogas-firm-aims-to-double-capacity-by-2026.html "Varo Energy buys 80% of Dutch biogas firm; aims to double capacity by 2026") Corporation said heavy outflows from exchanges could potentially indicate some large buyers were “sniffing out” the end of the bear market. Yet it’s anyone’s guess whether fickle bitcoin will begin to rally, or slide anew, or if it will swiftly rebound to the embrace of [technology stocks](https://www.financedigest.com/chatgpt-mania-pumps-up-chinese-ai-technology-stocks.html "ChatGPT mania pumps up Chinese AI technology stocks"). For the foreseeable future, macroeconomics remain the driver of a [market](https://www.financedigest.com/tissue-tapes-market-remains-afloat-amid-covid-19-pandemic-to-surge-positively-projects-fmi-2019-2029.html "Tissue Tapes Market Remains Afloat amid COVID-19 Pandemic, to Surge Positively, Projects FMI 2019 – 2029") that remains highly speculative in nature. The more speculative crypto is, the more it is tied to macro,” said Alex Miller, CEO of blockchain [firm Hiro Systems](https://www.financedigest.com/prefabricated-building-system-markets-advanced-research-growth-opportunities-in-global-industry-by-2025-edited-by-leading-research-firm.html "Prefabricated Building System Market’s advanced Research & Growth Opportunities in Global Industry by 2025 Edited by Leading Research Firm"). It [comes back](https://www.financedigest.com/twitter-asks-some-laid-off-workers-to-come-back-bloomberg-reports.html "Twitter asks some laid off workers to come back, Bloomberg reports") to, what are the use cases and what’s the productive capability of the asset? The more it’s being used for other things, the less it’ll be tied to macro.” (Reporting by Medha Singh and Lisa Pauline Mattackal in Bengaluru; Additional reporting by Alun John in London; Editing by Vidya Ranganathan and Pravin Char) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---