Market analysts argue that Tesla’s exposure to Bitcoin (BTC) could explain its close correlation with big tech over the past few weeks. On Wednesday, July 14, the 20-day correlation between the company’s price and the Nasdaq 100 index fell from 0.83 on June 17 to 0.14.

While Tesla is down nearly 4% this month, the Nasdaq 100 is up more than 2%. A declining correlation between Tesla shares and the NYSE FANG + index can also be observed, as reported by BNN Bloomberg. Amy Wu Silverman, a derivatives strategist at RBC Capital Markets, told reporters:

“Tesla has a strong correlation with megacap technology […] That relationship really broke down in the near future. When I asked around, the answer was that this had to do with their bitcoin exposure and how it should be taken into account when reporting income. “

The EV manufacturer’s earnings report is due July 26th. Tesla’s eventful and controversial relationship with Bitcoin dominated the headlines – arguably sparking a rally in the crypto market – back in February this year when the company announced its strategic acquisition of $ 1.5 billion in Bitcoin, which at the time was 7.7 % of all his cash was worth. It soon announced that it would start accepting BTC payments for its vehicles, suggesting holding Bitcoin instead of converting it.

The company sold some of its Bitcoin in the first quarter of 2021, generating a $ 272 million increase, although Musk would like to emphasize that it has not sold any of its own BTC holdings. In May, Tesla’s close ties with the crypto veteran began to dissolve when Musk announced that Tesla would withdraw from accepting BTC payments due to environmental concerns with mining.

Related: Elon Musk and Bitcoin: Toxic Relationship

Time will tell if Tesla’s near-term weakening of correlation with big tech stocks becomes an established mover. In the crypto arena, many more have focused on the overwhelming influence that Musk himself had on the entire crypto market, especially in relation to Bitcoin and the crypto-meme Dogecoin (DOGE). .