Positive Correlation between Bitcoin (BTC) and Micron Technology Stock
Caleb Franzen, a senior market strategist at Cubic Analytics and a researcher of both crypto and stocks, recently shared a noteworthy chart with his Twitter followers. The chart showcases a stock listed on NASDAQ that has maintained a positive correlation with the price of Bitcoin (BTC) for at least six years.
The Correlation between Bitcoin (BTC) and Micron Technology Inc. (MU)
In his Twitter thread, Franzen highlights the price dynamics of Bitcoin (BTC) and Micron Technology Inc. (MU), a stock of the memory products company based in the US. He has been drawing attention to this relationship since June of last year and it continues to demonstrate the close correlation between Bitcoin (BTC) and semiconductor stocks.
A Unique Correlation
After scanning numerous stocks, Franzen stated that he was unable to find another company that was as correlated to Bitcoin (BTC) as Micron Technology. The Idaho-based firm provides computer memory and data storage solutions, including dynamic random-access memory, flash memory, and USB flash drives. As of 2022, the company employs over 48,000 individuals.
Price Performance of MU Stock
Typically, the performance of the MU stock slightly lags behind the rate of the largest cryptocurrency. The stock reached its macro tops in June 2018 and January 2022. In Franzen’s chart, both the Bitcoin (BTC) price and Micron Technology stock are displayed in logarithmic scales, showcasing that the positive correlation between the two becomes stronger over time.
Impact on Bitcoin (BTC) Narrative
As reported previously by U.Today, the correlation between the Bitcoin (BTC) price and NASDAQ stocks spiked in 2022, leading some analysts to believe that this could harm the “digital gold” narrative surrounding the cryptocurrency.
The Significance of the BTC/MU Correlation
This correlation can also be useful in reassessing macro signals for the price of Bitcoin (BTC). In discussions with those skeptical of cryptocurrencies, the BTC/MU correlation can be used to demonstrate the maturity of the emerging digital asset industry.
At the time of printing, Bitcoin (BTC) is trading at $21,700. Due to recent regulatory crackdowns on staking in the US, its price has decreased by 7% from its local top.