Contents
- Bitcoin (BTC) has been correlated with Micron Technology (NASDAQ: MU ) for years, says analyst Caleb Franzen
- Why is this crucial?
Bitcoin (BTC) price Incredibly correlated to this stock for years
Vladislav Sopov
Top analyst and trader Caleb Franzen unveils a NASDAQ-listed stock that never lost its correlation to Bitcoin (BTC) price
Read U.TODAY on
Google News
Caleb Franzen, crypto and equity researcher and senior market strategist at Cubic Analytics, shares an interesting chart with his Twitter followers. It is a stock on the NASDAQ that has maintained a positive correlation with the Bitcoin (BTC) price for at least six years.
Bitcoin (BTC) has been correlated with Micron Technology (NASDAQ: MU ) for years, says analyst Caleb Franzen
On his Twitter threadFranzen demonstrates the price dynamics of Bitcoin (BTC) and Micron Technology Inc. (MU), a stock of the US-based “memory products” company launched in 1978.
Idaho-headquartered Micron Technology offers computer memory and data storage solutions, including dynamic random access memory, flash memory and USB flash drives. The company was listed on the stock exchange through an IPO in 1984. From 2022, the number of employees exceeds 48,000 employees.
Typically, MU stock performance lags slightly behind the rates of the largest cryptocurrency: it hit macro peaks in June 2018 and in January 2022.
On Franzen’s chart, both charts are shown in logarithmic scales. It looks like the positive correlation between MU and BTC is getting stronger and stronger over time.
As covered by U.Today previously, the correlation between Bitcoin (BTC) price and NASDAQ stocks increased in 2022; analysts argue that this fact could destroy the “digital gold” narrative surrounding the orange coin.
Why is this crucial?
Franzen explained that traders can take advantage of this correlation. For example, it gives them one more instrument to improve risk management by reallocating assets in their portfolio:
Bitcoin investors can hedge their exposure to BTC by shorting MU or the broader semiconductor industry without ever having to reduce their BTC position
This dependence can also be useful to reassess this or that macro signal for the Bitcoin (BTC) price. In discussions with cryptocurrency skeptics, the BTC/MU correlation can be used to prove the maturity of the nascent digital asset industry.
As of press time, Bitcoin (BTC) is changing hands at $21,700: due to the regulatory crackdown on betting in the US, the price fell 7% from the local peak.
