A report yesterday in The Block noted that bitcoin's correlations with those gauges had fallen to multi-month lows - to minus 0.84 with the Nasdaq and minus 0.82 with the S&P 500. (A reading of minus 1 would mean they're moving essentially the same amount but in opposite directions.)
There could be further downside for cryptocurrencies if the equity market's bad day turns into a broader correction, Joel Kruger, market strategist at the LMAX Group, said in a morning update.
"Right now, the biggest risk we see to crypto assets is the risk that highly overbought U.S. equities could be on the verge of rolling over," Kruger said. "The correlation isn't absolute by any means, but there is evidence that would suggest a sharp pullback in stocks could weigh on crypto, at least for a moment."
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