I noticed an interesting trend in the market these days — crypto is clearly following tech stocks. Bitcoin is currently trading around 72,780 dollars, although there was weakness not long ago. But what’s more important is that the correlation between Bitcoin and Nasdaq has changed dramatically. If before they moved in opposite directions (the correlation was minus 0.68), now it has become positive, plus 0.72. This happened quite recently, around the beginning of February. It turns out that Bitcoin now moves together with technology, not against it. This is important to understand if you’re watching the market.

Altcoins, of course, took a full hit. Meme coins like PEPE, DOGE, and TRUMP lost ground, although PEPE is showing a +2.99% increase over 24 hours, DOGE +0.78%, and TRUMP -1.61%. Meanwhile, MORPHO grew 19.81% over the week, and especially impressive is ZEC — +56.74% over seven days. Interestingly, ZRO, which was recently trending, has lost momentum and is now up 3.19% over the week.

Overall, the correlation between crypto and risk assets is becoming more obvious. When stocks fall, Bitcoin falls with them. When stocks rise, it rises too. Previously, crypto was considered an independent asset, but this correlation shows that the market has changed. Futures continue to experience outflows — open interest dropped 1.5% to 93 billion dollars in a day. Positions worth 229 billion dollars were liquidated, mostly longs. This indicates that many traders are closing bullish bets and shifting to a defensive stance.

While the market is waiting for some positive catalysts to turn around, volatility has decreased from monthly highs, which is somewhat calming. But as long as the correlation with tech stocks remains so strong, crypto will move in tandem with overall risk sentiment. Keep an eye on how Nasdaq and gold behave — this will help predict where Bitcoin is headed in the coming days.