Following Bitcoin’s (BTC) latest price rally, the leading cryptocurrency’s correlation with tech stocks diverged further in June, indicating that crypto assets are increasingly charting their own course.
More specifically, the correlation between BTC and top US stocks tracked by the Nasdaq 100 stock market index plummeted to the lowest level in nearly three years in June, according to a blog post published by crypto research platform Kaiko on June 26.
At the moment, the correlation between the two asset classes stands at just 3% this month after Bitcoin strongly outperformed Nasdaq 100 over that period. In particular, the number one crypto coin gained almost 14% in June, compared to just 3% gains seen in the broader tech index.
Compared to 2022, the move represents a steep drop in correlation, which stood at an average of 60% last year.
BTC boosted by ETF filings
After dropping below $25,000 mid-month due to intensifying regulatory crackdown in the US, Bitcoin’s price recovered sharply since June 15. On that day, BlackRock (NYSE: BLK), the biggest asset management firm in the world, filed an application to launch a spot-Bitcoin exchange-traded fund (ETF).
The move was mimicked by several other traditional finance companies, such as Invesco, Valkyrie, WisdomTree, and, most recently, HSBC. The actions triggered a surge in optimism over potential institutional crypto adoption, elevating BTC above $30,000 for the second time in 2023.
Bitcoin price analysis
At the time of publication, BTC was trading at $30,389, down 0.42% in the past 24 hours.
Over the past week, the cryptocurrency gained nearly 15%, and more than 83% since the start of the year.
In the wake of the most recent rally, eminent crypto market expert Michaël van de Poppe said that Bitcoin has managed to stay above the 200-week exponential moving average (EMA), a critical zone for BTC.
In addition, he pointed out that a former resistance zone is now acting as support for the cryptocurrency, through which BTC could witness “another rally to $38K,” the analyst emphasized.
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