Bitcoin Splits From Global Markets to Slide All on Its Own
- Bitcoin’s correlation with stocks drops to weakest this year
- Crypto universe shrank to equivalent of 1% of global equities
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The distress spread across cryptocurrencies by the meltdown of Sam Bankman-Fried’s FTX is fracturing the link the tokens once had with other financial assets, a sign that Bitcoin’s influence on global markets may be diminishing.
Bitcoin dropped 23% last week, its worst tumble since June, at the same time as the S&P 500 Index soared 5.9%. That helped weaken the correlation between the two to the lowest this year, based on a 20-day study. The performance gap between Bitcoin and the Nasdaq has hit the widest since 2020.