NYDIG: Bitcoin moves with tech stocks but remains structurally independent
Bitcoin moved almost in sync with shares of U.S. software companies last week. This sparked discussions that the cryptocurrency could become a kind of proxy asset for the technology sector.
However, analysts at financial firm NYDIG believe this explanation is overly simplistic, Cointelegraph reports.
According to Greg Cipolaro, head of research at the company, the visual similarity of price charts does not necessarily indicate a structural relationship between the assets. He noted that the current dynamics are more likely reflecting the broader macroeconomic environment. BTC was trading around $67,000 at the time of publication. Analysts believe the coinciding movements are largely explained by markets reacting to common liquidity factors.
Correlation linked to macroeconomic conditions
According to Cipolaro, the synchronized rise of BTC and technology stocks can be explained by the fact that both belong to the category of liquidity-sensitive risk assets. When more capital enters the market, investors tend to allocate funds to such instruments.
This can temporarily strengthen the correlation between different asset classes. However, this does not imply a fundamental connection between cryptocurrencies and technology companies. The analyst also noted that similar dynamics are not limited to software stocks. In recent months, BTC’s correlation with the S&P 500 and Nasdaq indices has also increased.
Most of BTC’s movement is independent of the stock market
Despite the stronger correlation, most of BTC’s price movement remains independent from the stock market. According to NYDIG statistics, only about 25% of BTC’s price dynamics can be explained by its relationship with equities. The remaining 75% is driven by factors unrelated to traditional markets.
These may include network metrics, blockchain usage dynamics, regulatory developments, or institutional demand. Such factors often shape the long-term trends of cryptocurrencies. Therefore, BTC cannot be analyzed solely through the lens of stock indices. Its market structure and economic dynamics remain unique.
BTC still does not behave like “digital gold”
The analyst also noted that many investors previously expected BTC to behave as a safe-haven asset. However, current market dynamics suggest otherwise. Traders often allocate capital along the risk curve, purchasing BTC alongside other risk assets.
This explains why the cryptocurrency does not always react to macroeconomic events in the same way as gold. Nevertheless, the unique market structure and growing network usage continue to distinguish BTC from traditional assets. According to NYDIG, this allows the cryptocurrency to retain its role as a portfolio diversifier. Even during periods of temporary correlation, its long-term dynamics remain largely independent.
Recently we wrote that the total cryptocurrency market capitalization is holding near $2.33 trillion, rising about 1.15% over the past 24 hours, while the Fear & Greed Index stands around 20, still reflecting cautious investor sentiment.
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