Bitcoin Just Broke Up with Nasdaq — And No One Saw It Coming
The post Bitcoin Just Broke Up with Nasdaq — And No One Saw It Coming appeared on BitcoinEthereumNews.com.
Amid a week where major assets, including Gold and the Nasdaq 100, posted gains, Bitcoin lagged significantly. The recent Bitcoin decoupling suggests the asset is neither a risk-on nor a safe-haven asset. According to Coingecko, Bitcoin’s price has declined by approximately 2.09% over the past seven days. This occurred while safe-haven gold surged 4.85% and the risk-on Nasdaq 100 Index climbed 1.34%. Sponsored Sponsored What Caused the BTC-Nasdaq Decoupling? For much of the year, Bitcoin has maintained a high correlation with the Nasdaq 100, generally rising and falling in tandem. This relationship held early last week. The mood was positive through Tuesday after Federal Reserve Chair Jerome Powell hinted at a potential interest rate cut at the October FOMC meeting and a possible end to Quantitative Tightening (QT). These statements led to minor gains for both the Nasdaq and Bitcoin. However, the correlation began to break sharply starting at 9 am UTC on October 15. From that point, the Nasdaq 100 finished the week up 0.44%, while Bitcoin plunged 3.71%. Leverage Washout Cited as Primary Cause On-chain analysts point to the massive crypto crash on October 10—an event that saw over $19 billion in liquidations and injected fear into the market—as the likely culprit. TeddyVision, an analyst at CryptoQuant, highlighted two distinct trends between August 1 and mid-October. Analyzing the 30-day Simple Moving Average (SMA) of stablecoin net inflows to exchanges, he found that USDC inflows to spot exchanges (typically used for spot buying) declined. Meanwhile, USDT inflows to derivatives exchanges (often used for collateral) increased. This suggests that capital used for actual asset purchases decreased. Meanwhile, liquidity supporting leveraged derivatives, such as futures and perpetual contracts, surged. Sponsored Sponsored The Role of Synthetic Demand According to this analysis, it might not have been organic spot demand which have driven…
