Typically when bitcoin goes down does can stock go down

``` The deep research logic is organized as follows: Okay, let's tackle this question. The user is asking if Canaan Inc. (CAN) stock tends to go down when Bitcoin (BTC) prices drop. First, I need to check the provided references and background to find relevant data. Looking at the references, there are a few key points. Reference 5 mentions a correlation of 0.38 between CAN and BTC-USD, which is low. That suggests their price movements aren't closely related. However, the user's question is specifically about Bitcoin downturns affecting Canaan's stock. Reference 15 has a query result showing Canaan's stock price dropped by -66.32% from 2022-12-30 to 2025-07-31. But I need to see if this decline coincides with Bitcoin price declines. The user's question is about the typical behavior, so historical data is crucial. Reference 10 and 22 have queries about historical correlation and Q2 2025 performance. Reference 10 shows stock codes and closing prices, but no direct correlation data. Reference 22 compares Bitcoin (BTCT) and Canaan (CAN) in Q2 2025, showing Bitcoin down 22.39% and Canaan down 29.56%. That's a higher drop for Canaan, but the correlation isn't directly stated. Also, Reference 11 discusses Canaan's stock plunging in 2025, partly due to Bitcoin cooling off and government crypto reserve news. This indicates that Bitcoin price movements do impact Canaan, but the correlation isn't straightforward. The user's profile mentions interest in sectors like vaccines and bio-pharma, but the question is about Canaan and Bitcoin. So, I need to focus on the provided data without bringing in unrelated sectors. Putting it all together, the correlation is low, but during Bitcoin downturns, Canaan's stock tends to drop more. The strategic holding of Bitcoin by Canaan might mitigate some risk, but the company's reliance on mining revenue makes it vulnerable to Bitcoin price fluctuations. The conclusion should highlight the low correlation but note that Canaan's stock is more volatile and sensitive to Bitcoin downturns. ``` ### 🌟 **Conclusion** 🌟 **Canaan Inc. (CAN) stock does not always follow Bitcoin (BTC) price movements, but it shows heightened sensitivity during Bitcoin downturns.** While the historical correlation between CAN and BTC is low (0.38), Canaan’s stock tends to experience sharper declines when Bitcoin prices fall, driven by its reliance on mining revenue and strategic Bitcoin holdings . --- ### 📊 **Analysis** 📊 #### 1. **Correlation Between CAN and BTC** | Metric | CAN vs. BTC-USD | Implication | |------------------------|------------------|-------------| | **Correlation** | 0.38 (low) | Prices move independently most of the time . | | **Volatility** | CAN: 29.79% vs. BTC: 14.70% | CAN is riskier and more volatile . | | **Performance During BTC Downturns** | CAN: -29.56% vs. BTC: -22.39% (Q2 2025) | CAN underperforms Bitcoin during price declines . | |code|Ticker|Name|Date|Closing Price|market_code| |---|---|---|---|---|---| |CAN|CAN.O|Canaan|20240731|1|185| |CAN|CAN.O|Canaan|20240801|0.9775|185| |CAN|CAN.O|Canaan|20240802|0.9275|185| |CAN|CAN.O|Canaan|20240805|0.854|185| |CAN|CAN.O|Canaan|20240806|0.8659|185| |CAN|CAN.O|Canaan|20240807|0.8314|185| |CAN|CAN.O|Canaan|20240808|0.912|185| |CAN|CAN.O|Canaan|20240809|0.9119|185| |CAN|CAN.O|Canaan|20240812|0.858|185| |CAN|CAN.O|Canaan|20240813|0.8657|185| #### 2. **Why CAN Stock Is Sensitive to BTC Downturns** - **Revenue Exposure**: Canaan generates ~70% of its revenue from Bitcoin mining equipment sales and self-mining operations . A drop in Bitcoin prices reduces mining profitability and equipment demand. - **Balance Sheet Risk**: Canaan holds 1,484 BTC (~$74M as of June 2025) as a strategic reserve . Bitcoin price declines directly impact its balance sheet strength. - **Market Sentiment**: Canaan’s stock is a speculative play on the Bitcoin ecosystem. Negative Bitcoin price momentum amplifies selling pressure on CAN shares . #### 3. **Recent Data Context** - **2023-2025 Performance**: CAN stock declined 66.32% during this period, aligning with Bitcoin’s volatility but showing greater sensitivity . - **Q2 2025**: Bitcoin fell 22.39%, while CAN dropped 29.56%—a 7.17% wider decline . --- ### 🎯 **Key Takeaway** 🎯 Canaan Inc. (CAN) stock is not a direct proxy for Bitcoin but exhibits heightened risk during Bitcoin downturns due to its mining-centric business model and Bitcoin reserve strategy. Investors should treat CAN as a high-risk, high-reward play within the crypto sector.