LONDON/NEW YORK: For the first time in a long, bitcoin has had a decent month. After falling for several months, it increased by more than 17% in July, marking its highest performance since October. The increase in ether was 57%, the highest monthly gain since January 2021.
Investors believed that economic weakness would prevent the Fed from quickly tightening monetary policy, which is why the rally coincided with advances in riskier assets like equities.
The 40-day correlation between Bitcoin and the tech-focused Nasdaq is now 0.90, up from 0.41 in January. A correlation of 1 indicates that their prices move in perfect lockstep.
Unlike prior years when it would routinely turn negative, indicating they went in the other direction, the main cryptocurrency has been positively associated with the Nasdaq since late November.
