Although Bitcoin (BTC) fell below $100,000 in November, it experienced a rapid recovery. However, Bitcoin is showing signs of fatigue and weakness despite trading above the psychological $100,000 level. While many reasons were cited as the reason for this weakness, Wintermute cited Bitcoin's high correlation with the Nasdaq. At this point, Wintermute analyst Jasper De Maere said that BTC is more sensitive to Nasdaq declines than to rises. According to Wintermute's latest analysis, Bitcoin still maintains a high correlation of 0.8 with the Nasdaq. At this point, analyst Maere emphasized that BTC reacts more slowly to rises in the Nasdaq, but is particularly sensitive to corrections and trades with a bearish bias. Maere stated that this situation is actually a bottom signal for Bitcoin, Bitcoin is more sensitive to Nasdaq declines, as it falls more sharply on down days than up days. However, when stocks rise, its response is weaker. This pattern, known as the negative performance curve, was last seen in the 2022 bear market. At this point, this pattern is usually at the bottoms, not the tops.” *This is not investment advice. Continue Reading: Giant Market Maker Wintermute Explains the Reason for Bitcoin's Sudden Drops! "The Last Time It Happened Was in 2022!"
