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Ethereum and Bitcoin continue to grind lower, having failed to take out key resistance levels. However, the MSCI World Tech index has broken out. This is an interesting divergence and is clearly highlighted in the charts since the June lows.
You can see the two series starting to go in different directions now. It’s worth pointing to because Bitcoin has had an 88% positive correlation with World Tech since the start of 2022 (Ethereum is 89%) and then from mid-June the correlation has stayed intact (Ethereum actually rose to 92%).
However since 27 July correlation for both blue-chip cryptos has plummeted to 2%! This is a major decoupling. I wish I could point to a solid reason why in a few simple words, but I cannot. So l leave the glaring divergence with you to consider.
