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Jinse Finance reported that a new report from Kaiko Research shows that the correlation between Bitcoin and the technology-heavy Nasdaq 100 Index has dropped to its lowest level in three years, falling to just 3%. Indicating that a decoupling may be in the making. Meanwhile, the correlation between cryptocurrencies and gold reached its highest level in several years last week, with both assets heading higher into 2023.
Meanwhile, the index's correlation with traditional risk assets has steadily weakened from an average of 60% in 2022. Still, the Nasdaq 100 is technically in a bull market, up more than 20% from its December 2022 low, analysts said.
Kaiko research analyst Dessislava Ianeva said the main reason for the drop in correlation is that bitcoin has been largely affected by cryptocurrency-specific events, such as the recent regulatory environment. That hasn't affected tech stocks to the same degree, she said.