Crypto prices have decoupled from prices for luxury watches, ending a prolonged positive correlation caused by unprecedented monetary stimulus.
The chart of the day is presented by crypto.com, the leading crypto platform trusted by over 80 million users worldwide. Let's take a look at the chart of the day. Bitcoin's price correlation with luxury watches has been broken. Both Bitcoin and luxury goods are scarce and prices between the largest Cryptocurrency by market cap and those fancy timepieces were positively correlated before spot ETF optimism took off prices for both rose during the COVID years as central banks and governments dumped easy cheap money into the economy. Data from watch charts.com shows that pricing peak came at the end of the bull market in 2021 with many traders cashing out at the peak and moving on to shiny new assets for most of 2023. Though prices for luxury watches and the coin desk 20 an index of the largest digital assets moved in parallel but the two di converged in the third quarter and fourth quarter. Head of research at VDX Greta Yuan pointed to the institutional interest that Bitcoin has now thanks to that ETF which watches don't quite have as a reason for the price bump. That's a wrap for today's chart of the day. I'm Jen Sani. We'll see you next time to unpack more of the data behind top news stories.