hollywoodbowlarcade| Bitcoin's correlation with technology stocks reaches its highest in August, supporters say it is more similar to a growth asset

As the Federal Reserve aggressively raised interest rates during the last tightening cycle, Bitcoin andhollywoodbowlarcadeHis speculative investments fell sharply along with them, and investors speculated that raising interest rates would curb the market's risk appetite. Now, as optimism is heating again that borrowing costs may fall soon, supporters of the largest cryptocurrency say it is more similar to high-growth assets such as technology stocks.

This has indeed been the case with Bitcoin transactions in recent times. The 90-day correlation between Bitcoin and the technology-dominated Nasdaq 100 index reached 0 this weekhollywoodbowlarcade.46, the highest level since the end of August last year. A coefficient of 1 means that the two assets are moving in the same direction, and-1 means that the movements are in the opposite direction. After the Federal Reserve began raising interest rates in early 2022, the correlation coefficient jumped to more than 0hollywoodbowlarcade.8 is the highest level since Bitcoin attracted attention from mainstream investors.

Joshua Lim, co-founder of trading firm Arbelos Markets, said that people are again paying attention to cryptocurrencies as a growth asset or an asset that represents network value. "Its ability to serve as a technology and value transfer mechanism means it will be more relevant to other assets that are also growth, such as Nasdaq, technology stocks, etc."

Bitcoin supporters have long touted Bitcoin as an irrelevant asset that is not dependent on any government and unlikely to be influenced by external forces or factors. For years, it has been known as the digital gold, an inflation hedge and a hedging tool. Bitcoin's price volatility has shattered many of these claims. Earlier this year, the U.S. approved the listing of exchange-traded funds (ETFs) that directly hold Bitcoin opened the door for more investors to invest in Bitcoin.

Toby ood, chief product officer of CCData, said,"Since the beginning of 4,hollywoodbowlarcadeYou can see a fairly high positive correlation between the S & P 500 and Bitcoin, which is unusual and completely breaks the theory that Bitcoin is a store of value." "I do think the main reason why it's hitting highs right now is that these ETFs have reached a real level of maturity and are one of the fastest-growing ETFs in history," he said.