Bitcoin's correlation with U.S. stocks falls to multi-month lows, stock market decline could pressure cryptocurrencies

Despite Bitcoin's (BTC) weak performance over the past few months, with the price down more than 20 percent since hitting an all-time high in mid-March, the U.S. stock market - represented by the Nasdaq Composite and SP 500 - appears to have been on a rising in one direction. The two stock averages closed higher for the seventh straight day on Wednesday, both hitting new all-time highs, according to MarketWatch. However, a report from The Block yesterday noted that Bitcoin's correlation with these indexes had fallen to multi-month lows - -0.84 with the Nasdaq and -0.82 with the SP 500.However, that's not the case today. They are all moving in sync. But unfortunately for the bulls, stocks have fallen sharply. At noon New York time, the Nasdaq was down 1.8% and the SP 500 was down 0.9%. Bitcoin, which had climbed above $59,000 earlier in the day on the back of positive U.S. inflation news, has fallen 0.6 percent to $57,500. The broader CoinDesk 20 index is down 0.4 percent, and cryptocurrencies could fall further if a bad day for stocks evolves into a broader correction, Joel Kruger, market strategist at LMAX Group, said in a morning update.