Share this article
Bitcoin No Longer Correlated to U.S. Stocks, Crypto Analytics Firm Block Scholes Says
The 90-day rolling correlation between bitcoin and Nasdaq, S&P 500 is now at the lowest level observed since July 2021, according to data tracked by crypto derivatives analytics firm Block Scholes.
Jul 5, 2023, 6:48 a.m.
Make us preferred on Google
Bitcoin's fortune is no longer tied to sentiment in the U.S. stock markets.
The 90-day rolling correlation of changes in bitcoin's spot price to changes in Wall Street's tech-heavy equity index, Nasdaq, and the broader index, S&P 500, has declined to near zero. That's the lowest in two years, according to data tracked by crypto derivatives analytics firm Block Scholes.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
"It [the correlation] is now at the lowest level observed since July 2021, when BTC was between its twin peaks in April and November," Andrew Melville, research analyst at BlockScholes, said in an email.
"The fall in correlation has happened as both assets have retraced losses sustained throughout last year's tightening cycle," Melville added.
The dwindling correlation with traditional risk assets means that crypto traders focusing solely on traditional market sentiment and macroeconomic developments may face disappointment.
ETF narrative
The recent spot bitcoin exchange-traded fund (ETF) filings by BlackRock (BLK), Fidelity, WisdomTree (WT), VanEck, Invesco (IVZ) and others have brought optimism to the crypto market.
Since BlackRock's filing on June 15, bitcoin has produced a return of 25%, ignoring the range bound activity in the U.S. stock indices.
Per Ilan Solot, co-head of digital assets at Marex Solutions, the ETF narrative can be broken down into three parts – frontrunning the launch, flows post-the-spot ETFs go live and validation of crypto as an asset class.
"Investment product flow in coming months could be a litmus test for the latter, so I’ll be watching it closely," Solot tweeted.
To the bears' dismay, investor interest in exchange-traded products has increased since June 15.
"Globally, BTC ETPs experienced inflows of 13,822 BTC in June, with the inflows kicking in after the BlackRock announcement on June 15," Vetle Lunde, senior research analyst at K33, said in a note to clients on Tuesday, discussing the impact of the ETF narrative. "The flows have been strong across jurisdictions, with Canadian and European spot ETPs and U.S. futures ETFs all experiencing solid inflows."
While the ETF narrative is currently in the driver's seat, some macroeconomic factors, like potential fiat liquidity pressures, still warrant attention, analysts told CoinDesk.
Bitcoin changed hands at $30,830 at press time, per CoinDesk data.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
XRP drops 4% as traders watch whether $1.88 support holds
Price stabilizes near recent lows after a volatile pullback from above $2.
What to know:
- XRP slipped nearly 4% as bitcoin fell below $88,000, with price action driven more by market structure and positioning than by changes to Ripple’s fundamentals.
- Spot XRP ETFs saw about $40.6 million in weekly outflows, suggesting institutional profit-taking and rotation rather than a loss of confidence in the asset.
- XRP remains range-bound in a tight consolidation between support around $1.88 and resistance near $1.93–$1.95, with fading volume pointing to a larger move once the current stalemate resolves.
Top Stories
