The Strange Correlation Between Overstock's Stock and the Bitcoin Price

At a time when it's hard to find a correlation between cryptocurrencies and just about any other asset class, it may come as a surprise that a fairly public stock would be tracking bitcoin.

Ever since 2014, the technical price charts between the two assets have developed a striking similarity, one that not only seems to grow stronger as times goes on, but that saw its latest example late last week amidst crypto market turmoil.

The first day Overstock accepted bitcoin payments marked the end of the first relief rally, a.k.a "Dead cat bounce," for both bitcoin and OSTK. Both began a more than 50 percent decline hereafter.

In May 2014, both stabilized in a sideways fashion, followed by a minor upswing.

From mid-September to mid-October, both fell more than 20 percent and formed "V" shaped recoveries at the exact same time, give or take a couple days.

The fourth white block features BTC's official capitulation that took place on Jan. 14, 2018 when price drop more than 30 percent in a single day.

Two weeks later, OSTK fell more than 20 percent in a single day.

The correlation gets a bit more interesting when BTC finally began a new uptrend above its 2013 peak.

After the bubbles burst, both fell to their first bottom on the exact same day, February 6.

It's equally as likely that Overstock is now seen by investors more as a cryptocurrency company than an online retailer.