Rare Bitcoin (BTC) Correlation Revealed by Bloomberg’s Mike McGlone

Bitcoin’s performance is underwhelming today, trading at a loss. Current data indicates that the cryptocurrency is down by 2.1%, with its price at approximately $25,883.15. Notably, Mike McGlone, a senior macro strategist, has observed that Bitcoin is strongly correlated with a prominent Japanese market index.

McGlone points out that this index can provide useful insights into Bitcoin’s performance and vice versa. Recently shared insights suggest that both Bitcoin and the Nikkei 225 have been maintaining a consistent directional relationship for an extended period.

However, McGlone warns that the recent decline in Bitcoin’s price could potentially impact the Nikkei 225 in the long run. Currently, this relationship may not be advantageous for Bitcoin as bullish investors might rally to uplift the cryptocurrency, seeking to mirror the index, which has recently reached a new high after 33 years.

### Bitcoin Boosters in Hibernation

For Bitcoin to achieve significant upward momentum, it requires substantial and sustained triggers. One potential catalyst is the accumulation of Bitcoin by institutional investors.

Market experts believe that approval of a spot Bitcoin Exchange Traded Fund (ETF) in the U.S. could significantly influence a price increase. However, the primary obstacle remains the Securities and Exchange Commission (SEC), which has consistently rejected applications and delayed decisions regarding current submissions.

It appears that Bitcoin is currently in a prolonged phase of inactivity, but there remains potential for a significant breakout in the near future.