ARE STOCKS AND BTC RE-COUPLING?
As the dollar printer’s rising tide lifts up all worthy boats, daily movements in the prices of Bitcoin and stocks are beginning to correlate again.
The 30D BTC Pearson Correlation, after reaching a 44-month high of 0.89 (on a scale of -1 to 1) on Sept. 26, began to slide to 0.49 on the eve of the US elections. By the time of the Labor Department’s fresh CPI print on Wednesday, that figure bounced back to 0.80.
Part of the reason is that the same institutions are buying both with money hot off the press. Popular Bitcoin investment analyst Lark Davis remarked, “BlackRock just keeps buying.”
Between Nov. 6 and Nov. 13, Wall Street sold over $4.73 billion worth of Bitcoin ETFs. The institutional crowd cooled off on Thursday, with $400 billion in net outflows, but BlackRock’s investors were happy to buy the dip with $126 million in net BTC sales Thursday.
“BlackRock knows,” replied one Ethereum analyst on Davis’ thread.
