A report published by major U.S.-based crypto exchange Kraken has identified signs the correlation between Bitcoin (BTC), the greenback, and legacy markets, is continuin to weaken.
Kraken’s September volatility report found Bitcoin (BTC) largely maintaining a negative correlation with the U.S. Dollar Index (DXY) since May, despite a brief coalescence between the two markets in early September.
Bitcoin’s 30-day rolling correlation with U.S Dollar Index: Kraken
The report attributes BTC’s dollar decoupling to the U.S. Federal Reserve’s plan to maintain zero percent interest rates until at least 2023, in addition to declining growth rates. Meanwhile, Bitcoin has shown positive correlation with the Euro since May.
The report notes that while the start of the month saw an 8-month low for correlation between BTC and the S&P 500, the correlation would later increase as both markets experienced sideways consolidation.
Bitcoin’s correlation with gold has remained positive since mid-July, with both markets experiencing bearish pressure over recent weeks.
Bitcoin’s 30-day rolling