Bitcoin is often misunderstood as just another tech stock, but the reality is far more complex. Despite the visual similarities in their price movements, Bitcoin and the Nasdaq have a minimal correlation, averaging just 0.04 over the past decade. This article debunks the myth that Bitcoin is simply a turbocharged Nasdaq proxy, highlighting its unique drivers and potential as a distinct, diversifying asset in today's financial landscape.
Exhibit 1: Total Return Performance indexed to 100
Source: MarketVector Research.
Exhibit 2: Rolling 90-Day correlation coefficient between Bitcoin and TQQQ (3x leveraged Nasdaq)
Source: MarketVector Research.
Dive in to explore what truly sets Bitcoin apart from traditional tech investments.