Bitcoin is once again rebuilding its correlation with technology stocks and is reflecting the price action of the Nasdaq 100 Index.

Following a breakdown in the directional link between both asset classes back in June, the Nasdaq 100 has surged more than 40% in 2023, fuelled by the hype over artificial intelligence, Bloomberg reports.

“Bitcoin has this large overreaction to news events, and in the absence of that, I would expect it to correlate more with stocks. I can see the correlation trending up in the next few months,” said CCData research lead Josh de Vos.

The 30-day correlation coefficient for Bitcoin and the Nasdaq 100 has reverted to almost 0.4 compared to negative 0.1 in June and July. A reading of 1 shows assets are moving in tandem, whilst -1 shows they are travelling in opposite directions. 

During the huge stimulus era of the pandemic, crypto and tech stocks surged in lockstep. Whereas correlations between the world’s largest crypto and several traditional assets diminished following a crash in virtual coins last year that impacted investor interest in the market.

In related news, Bitcoin’s clean energy usage in mining operations has surpassed the vital 50% mark, according to Bloomberg’s crypto analyst, Jamie Coutts.

This is founded on the latest findings from the Cambridge Center for Alternative Finance, which recently downwardly revised its forecasts of Bitcoin mining power consumption, considering sustainable energy sources such as off-grid electricity and reduced reliance on fossil fuels, Crypto News reports.

Since the mining ban enforced by China in mid-2021, emissions linked to Bitcoin have fallen by 37.5%, dismissing certain concerns over its environmental impact.

Bitcoin registered gains for the third straight day on Thursday, edging up 2.2% to $26,692, whilst the Nasdaq 100 increased 0.8%.