Bitcoin Correlation with US Tech Stocks Hits Near Three-Year High

The correlation between Bitcoin and US tech stocks has surged, reaching approximately 0.80. The Kobeissi Letter highlighted this phenomenon, marking the second-highest level in a decade. This shift underscores changing dynamics in Bitcoin’s asset behavior.

The Kobeissi Letter, a financial commentary account, noted the significant correlation spike. Primary sources have yet to show parallel comments from key industry leaders or developers. Current analysis links Bitcoin’s behavior to macroeconomic trends and market sentiment changes.

Bitcoin and major tech stocks are most affected, with minimal linkage to safe-haven assets like gold. Jasper De Maere of Wintermute identified Bitcoin as a “high-beta risk asset.” The crypto market recently lost $1.1 trillion in market cap.

“This crowding of mindshare means BTC remains correlated when global risk sentiment turns, but doesn’t benefit proportionally when optimism returns. It reacts as a ‘high-beta tail’ of macro risk rather than a standalone narrative.” — Jasper De Maere, Wintermute

Bitcoin’s correlation patterns reflect broader market stress; similar trends were observed during significant past market events, like the March 2020 COVID crash. Historically, Bitcoin has moved in sync with equities under economic duress.

The implications of this correlation indicate potential volatility amplification in both bullish and bearish markets. No comments from the SEC, CFTC, or other regulators have surfaced as of yet. Bitcoin continues to draw comparisons with leveraged tech stocks, impacting portfolio strategies and investor perceptions.