ARK Innovation ETF (ARKK) Historically a Leading Indicator for Economic Cycles
According to macro analyst @TomasOnMarkets, Cathie Wood's ARK Innovation ETF (ARKK) has traditionally served as a leading indicator for the ISM Purchasing Managers' Index (PMI) and is often viewed as a direct bet on economic expansion.
Bitcoin and ARKK: A Strong Correlation That’s Now Diverging
Over the past few years, ARKK's price movements have closely tracked Bitcoin's, reflecting similar market sentiment and risk appetite.
However, in recent weeks, ARKK has surged while Bitcoin has dropped 10%, breaking their usual correlation.
Based on historical percentage change correlations, Bitcoin’s price should be above $110,000 if it were to align with ARKK’s recent rally.
Implications for Bitcoin’s Price Movement
If Bitcoin reestablishes its correlation with ARKK's performance, this divergence may indicate an upcoming BTC price correction to the upside, potentially surpassing $110,000. With macroeconomic factors aligning with increased institutional adoption, traders will be closely watching if Bitcoin follows ARKK’s lead once again.
