Bitcoin’s Correlation With Tech Breaks Down Amid Supply ‘Overhang’

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After trading almost in tandem in recent months, Bitcoin’s correlation with surging US equities is collapsing under the weight of too much supply and not enough demand for the cryptocurrency.

The 90-day-correlation coefficient of Bitcoin and the tech-dominant Nasdaq 100 index dropped to 0.21 on Tuesday, the lowest level since the start of May. It has declined by more than 50% in the two months. A coefficient of 1 means the assets are moving in lockstep, while minus-1 would show they’re moving in opposite directions.