Bitcoin’s Tech Stock Correlation: Brace for Deeper Drawdowns Ahead
Bitcoin's fate now moves in lockstep with big tech—and that spells trouble for crypto bulls.
When Nasdaq sneezes, Bitcoin catches a cold. The correlation between crypto's flagship asset and tech stocks just hit multi-month highs. That means traditional market turbulence now ripples directly into digital asset portfolios.
Institutional adoption created this monster. The same hedge funds and ETFs that poured billions into Bitcoin now treat it like just another risk asset. When they flee tech stocks, they dump crypto too—no questions asked.
Forget 'digital gold.' Bitcoin behaves more like tech-sector leverage these days. The decoupling narrative? Shelved indefinitely. Portfolio managers who bought the diversification story now face correlated drawdowns that would make any risk manager flinch.
This isn't 2017 anymore. Welcome to mainstream finance—where even rebellion gets a ticker symbol and moves with the Fed's whims. Maybe Satoshi should have included a 'uncorrelate with tech stocks' button in the code.
