For much of this year all market correlations have gone to 1.
A big component of that has been bitcoin, which has traded like a levered play on mid-cap tech/pandemic stocks. Bitcoin has also been a good early barometer on broad market sentiment. It rallied before the turn in US equities in a climb to $39,000 from as low as $32,950.
But while the last three days in US equity trading have included strong gains, bitcoin isn't confirming that move and it's not pointing to more. Instead, it's leveled off. It's currently trading where it was on January 26.
In the past few minutes, some selling pressure has kicked up as well, taking it down about $330 in fairly short order. That's a small move in bitcoin terms but keep an eye on it in the hours ahead. More broadly, S&P 500 futures are solidly higher, up 20 points.
