(Bloomberg) – Tesla Inc. stocks were less correlated to big U.S. tech companies ahead of the electric vehicle maker’s earnings report, and Bitcoin could be the reason.

The 20-day correlation between Tesla’s stock price and the Nasdaq 100 index fell from 0.83 on June 17 to 0.14 on Wednesday. A decline has also been seen in the relationship between the EV company’s stocks and the NYSE FANG + index, which includes the largest tech companies such as Facebook Inc., Apple Inc., Amazon.com Inc., and Netflix Inc. Tesla reports profits on July 26.

“Tesla has a strong correlation with megacap technology,” and “that relationship has really decoupled in the near future,” said Amy Wu Silverman, derivatives strategist at RBC Capital Markets, in email comments. “When I do a survey, I get the feedback that this is related to your Bitcoin exposure and how it should be taken into account when you report income.”

Tesla announced a $ 1.5 billion investment in Bitcoin in February after CEO Elon Musk made positive comments about the largest cryptocurrency. The move sparked speculation that other companies would follow suit – although few have. Tesla has since sold some of the inventory, and Musk has emerged as a critic of Bitcoin for reasons of energy usage, among other things.

Tesla is down nearly 4% this month while the Nasdaq 100 is up more than 2%. Bitcoin has fallen from a high of nearly $ 65,000 in mid-April to around $ 32,500 as investor appetite for speculative assets like cryptocurrencies has largely decreased.

Silverman noted that Tesla also has an “extremely steep” skew, a measure of how expensive bearish options are compared to bullish options.

“This is very unusual for Tesla, which spends a lot of time on ‘inverted skews’ because both institutions and retailers love to buy out-of-the-money call options on their behalf,” she said. Those looking for bearish trades might do well to take advantage of put spreads to take advantage of high skew, Silverman added.

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