- Bitcoin has risen by 0.54% over the past day.
- The king coin has maintained its strong correlation with the U.S. stock market
Over the past year, Bitcoin [BTC] has experienced significant growth, hiking from $38k to $109k.
Such a considerable development has attracted institutional investors, with traditional financial markets embracing Bitcoin as a valuable asset.
This institutional interest has resulted in an increased correlation between BTC and the U.S. stock market.
Bitcoin strongly correlates with the U.S. stock market
According to CryptoQuant, Bitcoin has remained closely tied to the performance of the U.S. stock market.
For instance, in 2024, BTC and Nasdaq showed a historically strong correlation which has currently reached historical levels.
A similar trend can be observed with the S&P 500, although there are instances they have decoupled.
For example, on the 4th of August 2024, when the U.S. stock market crashed, BTC also dropped to $49k. In November, following the election, BTC and the stock market has a strong rally.
Source: CryptoQuant
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Author: Gladys Makena
