Dollar-Bitcoin Correlation Drops to Lowest Since 2021

by in Cryptocurrency News

Bitcoin

Bitcoin and the US dollar show multidirectional movement dynamics. When the US currency adds value, BTC, on the contrary, retreats.

Bitcoin is viewed by most experts as a risky asset, which is why it trades in tandem with tech stocks and is highly dependent on the US stock market. As a result of the June sales, the BTC-USD correlation index fell to its lowest level since January last year.

According to TradingView, this indicator is now -0.77. With Bitcoin trading just above $20,000, the US currency is holding its highest since 2003.

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The second quarter turned out to be the worst for the largest digital currency in the last ten years. According to its results, the cost of bitcoin has collapsed by more than 56%.

Whales, including miners, took part in the sales. The Santiment team estimates that more than $1 million worth of transactions increased sharply in the Bitcoin network last week. Whales entered the market after each BTC bounce.

According to analysts, large investors prevent the coin from making a breakthrough and prefer to sell during surges.