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S&P 500 index, Bitcoin show further signs of decoupling as tech stocks prop up index


Quick Take

S&P 500 faces headwinds

  • The S&P is roughly up 7% in 2023, but most of the gains have come from seven tech stocks, which coincidentally have the largest market cap in the index.
  • While these stocks have incredibly elevated PE ratios, high rates and a lack of stimulus will provide headwinds for these stocks and S&P 500 as an index. As Q1 earnings season approaches.
  • While the S&P 500 is starting to de-correlate further from Bitcoin, roughly at a 50% correlation. At the same time, the Nasdaq is down to a 42% correlation with Bitcoin.
S&P: (Source: MacroScope)
S&P: (Source: MacroScope)
Correlation: (Source: Trading View)
Correlation: (Source: Trading View)

GBTC

  • The GBTC discount continues to narrow, as the discount to NAV is below 38%, while it was as high as 50% in Q4 of 2022.
  • GBTC is up 117% year to date, outperforming Bitcoin, which has just surpassed $30,000.
  • CryptoSlate did an extensive market report on the GBTC trade that had further implications for the crypto industry.
GBTC: (Source: TradingView)
GBTC: (Source: TradingView)

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