PANews reported on January 30 that according to The Block, JPMorgan analysts found that Bitcoin (BTC) has the highest correlation with small-cap technology stocks, especially in the Russell 2000 technology sector. This correlation peaks when the technology market performs strongly or sells off.
Analysts pointed out that since the outbreak, the correlation between the crypto market and the stock market has remained positive, mainly affected by the participation of retail investors and technology-driven characteristics. In addition, the high correlation between Bitcoin and small technology stocks stems from the crypto industry's reliance on venture capital and the fact that blockchain innovation is usually concentrated in small and medium-sized technology companies rather than industry giants. JPMorgan Chase emphasized that when the technology industry experiences major market adjustments, such as in 2020, 2022 and 2024, the correlation between Bitcoin and technology stocks will be more significant, further verifying the close connection between cryptocurrencies and the technology industry.