The latest data shows that Bitcoin has completely decoupled from American shares. This is significant considering that the flagship cryptocurrency and these stocks previously had a positive correlation, which undoubtedly had a positive impact on Bitcoin and broader cryptocurrency market.

Bitcoin has no correlation with US stocks

Data With IntoTheBlock Market Intelligence Platform shows that Bitcoin’s correlation with the Nasdaq 100 and S&P 500 has fallen to -0.78 and -0.83, respectively. This means that Bitcoin and these assets have a mighty negative correlation, and their prices tend to move in opposite directions.

Indeed, this has been the case for some time now, given that the flagship cryptocurrency has been in a major downtrend for some time now. On the other hand, the Nasdaq 100 and S&P 500 are still enjoying significant gains. Data from IntoTheBlock shows that the Nasdaq 100 and S&P 500 are up over 7% and 4% over the past last monthwhile Bitcoin’s value fell by more than 15%.

Bloomberg report also highlighted the “collapsing” correlation between Bitcoin and U.S. stocks and attributed the decline to the massive selling pressure the flagship cryptocurrency is experiencing. Joshua Lim, co-founder of trading firm Arbelos Markets, told Bloomberg that this selling pressure is being caused by such German government “limited” Bitcoin’s rise as US stocks trade at record highs

Data from IntoTheBlock shows that it was selling pressure that caused Bitcoin to break away from these US stocks. In early June, Bitcoin’s correlation with the Nasdaq 100 and S&P 500 was 0.86 and 0.73, respectively. However, this mighty positive correlation began to decline as Bitcoin miners began to sell off a significant portion of their holdings. Bitcoinist reported that these miners sold over 30,000 BTC in June.

In overdue June, Bitcoin also experienced increased selling pressure thanks to German governmentwho began selling some of the bitcoins confiscated from the pirated movie Movie2k. This selling pressure did not subside as the German government continued its sale this month.

Moment of Truth for BTC and the Stock Market

Bitcoin and US stocks to be tested again as US Consumer Price Index (CPI) Inflation data will be released on July 11. The long-awaited report is expected to show that inflation in the country is falling, further strengthening the case for interest rate cuts. Such a development is undoubtedly bullish for these assets, especially Bitcoin and the broader cryptocurrency market.

In the brief term, positive inflation data is expected to cause a rebound in the price of Bitcoin, which is currently trying to get back $60,000 as support. Cryptocurrency analyst Justin Bennett warned that Bitcoin needs to stay above $57,800, otherwise it risks falling to from just $50,000.

Featured image created with Dall.E, chart from Tradingview.com