Bitcoin has been increasingly correlated to tech for the past few years.
Investors have regarded BTC and tech stocks similarly citing risk and growth potential.
Blockchain initiatives encouraging technological advancement will strengthen the correlation.
Bitcoin’s association with other markets is growing, as analysts note that the market’s biggest asset is seeing a growing correlation with big tech stocks. According to data from Trading View, BTC prices are seeing an increasing correlation with Tesla (TSLA).
In light of this analysis, the correlation raises questions about whether or not bitcoin is a good diversification option. Bitcoin advocates have long argued that the asset’s absence of correlation to other markets makes it a desirable investment.
However, on-chain analytics show that the absence of correlation is fading as more investors flood the market.