Bitcoin’s Price Has Correlated With US Stocks for The Last Month

Over the last month, Bitcoin’s price (BTC) has correlated tightly with stocks. Here’s what could be causing it.

The last week saw hundreds of billions of dollars wiped from the cryptocurrency industry’s overall market cap. Bitcoin’s price is down 8.8% over the last 7 days. Ethereum’s price (ETH) is down 15.4%. Binance Coin BNB) is down a further 17.9% over the same period. And pity the Dogecoin holder (DOGE) who bought last Saturday for a 20% loss by today.

In fact, all of the top ten cryptocurrencies by market cap, other than Solana (SOL), are in the red for the week.

Why Is Bitcoin’s Price Falling With Good News?

The market route has tempted a central bank governor to issue another one of those Bitcoin obituaries. But cryptocurrency traders could be forgiven for thinking this week was going to be really rad for Bitcoin’s price at exchange.

In El Salvador, an entire sovereign government just embraced Bitcoin as an official currency. The total Bitcoin network’s hash power has come roaring back from the expulsion of miners from China. The hash rate has nearly doubled since its late-June lows.

Plus, there’s been a wave of big money pouring capital into Bitcoin. As Institutional Investor noted on Aug 26 that these massive investments (sometimes in $30 million blocks of bitcoin) are indeed coming from institutional investors:

“This came from Coinbase, a prominent cryptocurrency platform with a service that essentially acts as a prime broker for institutions. Its first-quarter report revealed that of the $335 billion in trades the company did in Q1 2021, $215 billion came from institutional investors.”

But that could be exactly why Bitcoin’s price has plummeted over the last week, despite all these positive signs for the blockchain’s business fundamentals. Institutional investors also went risk off this week in equities, with major stock indexes all down for the week too.

Are Institutions Bringing BTC into Correlation with Stocks?

This is what the industry’s stakeholders are bargaining for when they cheer on the institutional adoption of Bitcoin. Along with all their capitalization comes their capitulations, and Bitcoin becomes an increasingly correlated asset roiled like high-tech stocks by broader market movements. It just has more dramatic crests and troughs along the way.

Blue: BTCUSD | Orange: S&P 500 Index | 1-month chart | Source: TradingView

When we chart Bitcoin’s price over the past month against the S&P 500 Index’s gains and losses, we see a strong correlation. Of course, BTC has a more dramatic and volatile curve, but there’s an unmistakable correlation all month at a glance. When we add in the Dow Jones Industrial Average, NASDAQ Composite, and UK100 or FTSE 100 Index, the correlation is further validated. The major stock indexes and Bitcoin’s price are moving in concert.

Blue: BTCUSD | Orange: S&P 500 Index | Indigo: NASDAQ Composite | Teal: Dow Jones Industrial Average | Gold: FTSE 100 1-month chart | Source: TradingView

The S&P 500 was down 1.63% for the last five days. The Dow was down 2.24%. The NASDAQ fell 1.29%. And the FTSE 100 was down 1.53%.

Institutional investors are pragmatic, cautious, and seek to maximize returns and mitigate losses. They don’t share the ideological convictions of Bitcoin hodlers or their wilder expectations for Bitcoin’s price. As they continue pouring into crypto, traders will have to constantly reevaluate and price in their froth and selling hands.


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Crypto Trader Michaël van de Poppe Says These Three Altcoins Could Follow Solana’s Breakout

A popular crypto trader is eyeing three altcoins that could mimic Solana’s recent historic rise.

Solana (SOL) has climbed to the sixth-ranked cryptocurrency, according to CoinGecko. Currently trading at $175, the smart contract platform is up more than 600% from its July low of $23.47.



Crypto trader and market analyst Michaël van de Poppe is keeping close tabs on decentralized blockchain platforms Tezos (XTZ), Polkadot (DOT), and Cosmos (ATOM) after SOL’s breakout to a new all-time high.

He tells his 123,000 YouTube subscribers ATOM looks ready to run based on its underlying market structure.

“If I would have to choose a coin that’s going to follow Solana and it has to be a layer-one solution, it’d either be Tezos, Polkadot, or it’s going to be Cosmos, and given the structure, it looks amazing.”

Van de Poppe says that ATOM is trading within a two-year accumulation period against Bitcoin and that he’s looking for a retest of the 0.00051 BTC level ($22.88) after the token began trading in an uptrend against BTC in August.

As for where ATOM is headed next, Van de Poppe is paying attention to two key price levels.

“Nice retest off the ($17.47) level, regained everything that it lost in the crash a few days ago, and I think that we’re going to continue moving and we’re going to break the highs through which the next target zone I am looking at for Cosmos is $47.50 and $72.”

At the time of writing, ATOM is trading at $26.98, according to CoinGecko.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Alexandr III


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Trading Bitcoin Is Comparable To Trading Stamps. Collapse Looming, Says Sweden Central Bank Governor

Bitcoin, and cryptocurrencies in general, has been a controversial topic for a long time. There are many words for what cryptocurrencies pretend to be but are not: decentralized, safe, fair, valuable, stable, a currency, honest, a solution, the future.

Much like many other central bankers, Sweden’s Central Bank governor is very skeptical about Bitcoin trading.

The Sveriges Riksbank Governor’s Take On Bitcoin

According to a Bloomberg article, the governor of Sveriges Riksbank, the central bank of Sweden, questioned the staying power of currencies without government backing. He compared buying and selling Bitcoins to trading stamps.

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Speaking at a banking conference in Stockholm, Sveriges Riksbank governor Stefan Ingves argued, “Private money usually collapses sooner or later,”. Further remarking, he said, “And sure, you can get rich by trading in bitcoin, but it’s comparable to trading in stamps.”

Earlier this year, Ingves said that Bitcoin and other cryptocurrencies are unlikely to escape regulatory oversight as their popularity grows.

Related Reading | Sweden to Bring Forward Launch of State-Backed Digital Currency e-Krona

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Despite his opinion of Bitcoin’s deficiencies as a currency, Ingves has taken its reputation among investors seriously. Highlighting consumer interests and money laundering as being of particular concern, the central banker conceded this June that the cryptocurrency had gotten “big enough” to merit close attention from regulators, central bankers, and lawmakers across the globe.

Cryptocurrencies And Central Bank Governors

Ingves’s remarks are in line with what other central bankers have said about crypto. Some central bankers have compared it to the tulip bubble of the 17th century, which ended in collapse.

Related Reading | Bitcoin Outlives Tulip, Dotcom, and Every Notorious Market Bubble

In February, Ireland’s central bank governor Gabriel Makhlouf said bitcoin investors should be ready to lose all their money. “Personally, I wouldn’t put my money into it, but clearly, some people think it’s a good bet,” Makhlouf said. “Three hundred years ago, people put money into tulips because they thought it was an investment.”

Related Reading | Bank of England Governor Still Isn’t a Fan of Bitcoin

Similarly, Bank of England governor Andrew Bailey said cryptocurrencies have no intrinsic value and may crash to zero. “I’m sorry, I’m going to say this very bluntly again: buy them only if you’re prepared to lose all your money,” Bailey said. “I would only emphasize what I’ve said quite a few times in recent years. I’m afraid they have no intrinsic value,”

BTCUSD Chart from

BTCUSD Chart from

BTC trading above $45K | Source: BTCUSD on

Around the world, central banks in countries such as China, Ghana, South Korea, Japan, and Switzerland have started researching, experimenting with, and testing the launch of Central Bank Digital Currencies. The Federal Reserve has also said it is researching the pros and cons of creating a CBDC for the United States.

Meanwhile, El Salvador made history this week by adopting Bitcoin as legal tender.

Featured image from Financial Times, Chart from


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Project Dawn initiative and upcoming mainnet upgrade back LUNA’s new ATH

In the last 24-hours, Terra (LUNA), a blockchain protocol focused on building a global payments system powered by the UST stablecoin, rallied to a new all-time high at $45. 

LUNA/USDT 1-day chart. Source: TradingView

Data from Cointelegraph Markets Pro and TradingView shows that since bottoming at a low of $5.61 on July 20, the price of LUNA has ripped 720% higher to a record high at $45 on Sept. 10.

The swift rally also lifted the total value locked (TVL) on the Terra protocol to a new all-time high at $7.83 billion on Sept. 5, making Terra the fourth-ranked blockchain platform by TVL according to Defi Llama.

Total value locked on Terra. Source: Defi Llama

Related: Altcoin Roundup: Layer-one protocols chip away at Ethereum’s dominance.

A new funding initiative boosts LUNA price

A scroll through the project’s Twitter feed shows that the surge in price followed the announcement of ‘Project Dawn’, a new funding initiative for the Terra ecosystem meant to help improve critical infrastructure and accelerate the growth of the ecosystem.

According to Terra co-founder Do Kwon, Project Dawn has allocated $150 million to “build a core Cosmos contributor organization, invest in the ecosystem’s node infrastructure, and diversify the validator and oracle infrastructure.”

Another source of excitement for the Terra community is the upcoming launch of its Colombus-5 mainnet upgrade on Sept. 29, which is “Terra’s most significant mainnet upgrade” according to the project.

On top of developments to the main protocol, LUNA price has also benefited from the expansion of the Terra ecosystem which has seen new DeFi protocols like AlphaDeFi launch and begin to attract liquidity.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.