Bitcoin is often called ‘digital gold.’ However, in practice, its dynamics increasingly resemble those of tech company stocks.
In recent months, the cryptocurrency has often moved in tandem with the Nasdaq index and other American indices. This has sparked a new debate in the market: has bitcoin really become a technology asset?
Correlation With Tech Stocks Has Strengthened
In recent months, the correlation between bitcoin and American indices has noticeably increased. In particular, analysts note a high correlation with the Nasdaq-100 and S&P 500.
Some data show that bitcoin’s correlation coefficient with Nasdaq can exceed 0.6 over short time periods. This is a fairly high figure for different asset classes.
At the same time, the correlation with gold remains significantly weaker. For example, at the beginning of 2025, the correlation between bitcoin and gold was about 0.12. This divergence has strengthened the arguments of those analysts who consider bitcoin more of a technology asset than a digital analogue of gold.
The Reason Is Not in Technology
Despite similar price dynamics, analysts believe that the connection between bitcoin and the tech sector is more macroeconomic in nature.
Both bitcoin and tech stocks are sensitive to the same factors. Among them are market liquidity, interest rates, and the overall investor appetite for risk.
When central banks pursue loose monetary policy and liquidity rises, both asset classes usually show strong performance.
When interest rates rise, both cryptocurrencies and tech company stocks come under pressure. Therefore, the parallel movement of assets does not necessarily indicate a fundamental connection between them.
Most Volatility Comes From the Crypto Market
Despite the correlation with the stock market, most of bitcoin’s price fluctuations are still formed within the crypto industry itself.
According to analysts, about a quarter of bitcoin’s volatility can be explained by stock market movements. The remaining three quarters are related to internal factors in the crypto market.
Such factors include the launch of new financial products, regulatory changes, infrastructure development, and investor demand dynamics. This means the cryptocurrency retains its own drivers of movement.
Institutional Investors Are Changing Perception of the Asset
One reason for the increased correlation with the tech sector has been the emergence of institutional investors. With the launch of spot ETFs, large funds began to consider bitcoin as part of a portfolio of risky assets.
In this logic, it falls into the same category as tech companies and other growth assets. For example, BlackRock’s IBIT ETF has attracted billions of dollars in institutional capital. This influx of funds has strengthened the connection between the crypto market and traditional financial markets.
Bitcoin Can Serve as a Source of Liquidity
There is another reason that strengthens the correlation with stocks. Bitcoin is often used as a liquid asset that can be quickly sold to meet margin requirements.
When tech stocks fall and investors face margin calls, some participants may sell cryptocurrency to free up capital. This creates additional synchronicity between the markets.
At the Same Time, Results Remain Different
Despite periods of high correlation, the long-term dynamics of bitcoin and tech indices differ significantly. For example, in 2024, bitcoin rose by more than 135%, while the Nasdaq-100 index gained about 34%.
In 2025, the situation changed. Bitcoin fell by about 17%, while the Nasdaq-100 showed growth of around 7%. These differences confirm that the cryptocurrency is not a direct analogue of tech stocks.
Proxy Companies Strengthen Market Connections
An additional factor in the connection has been public companies directly linked to the crypto industry. Some tech companies hold significant amounts of bitcoin on their balance sheets. Others provide infrastructure for the crypto market or earn income from trading digital assets.
The shares of such companies often move together with the price of bitcoin. As a result, this creates additional correlation between the tech sector and the crypto market.
What’s Next?
Today, bitcoin is at the intersection of two worlds — the cryptocurrency market and traditional finance. On one hand, its price increasingly reacts to macroeconomic factors that affect stocks and bonds. On the other hand, the cryptocurrency retains its own market structure and unique growth drivers.
As Wall Street more actively integrates digital assets into the financial system, the connection between markets may strengthen. However, this does not mean that bitcoin will fully turn into a tech stock. Rather, it is becoming a separate asset class that sometimes moves with the tech market but remains an independent market.
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