Historic Bitcoin-S&P decoupling fuels altseason hopes – All the details!

Key Takeaways

Bitcoin decoupled from the S&P 500 as inflows lifted BTC and altcoins. Analysts warned ETH’s edge might fade as BTC retests resistance, with Cowen projecting renewed BTC dominance by October.

Bitcoin [BTC] and the S&P 500 continued to decouple as of press time. Historically, both assets tended to move in parallel, but the latest 1-day chart showed a clear divergence.

Bitcoin, shown in purple, has rallied upward, while the S&P 500 trended lower. Naturally, this hinted that capital rotation into the cryptocurrency was underway.

This renewed strength comes after Bitcoin’s weak performance in recent weeks. The asset had dropped from its all-time high of $124,000 to as low as $108,000 before attempting a breakout above the $110,000 resistance zone.

Source: TradingView

A familiar decoupling pattern

This was not the first time Bitcoin and the S&P 500 decoupled. Over the years, Bitcoin often outperformed equities.

According to Curvo, between 2020 and 2024, the S&P 500 outperformed Bitcoin only three times, notably during the 2022 decoupling. In that period, Bitcoin fell 62% compared to the S&P 500’s 13% decline.

On top of that, liquidity favored Bitcoin more recently. The asset gained 135% in 2024, versus the S&P’s 33%.

If capital inflows continued, Bitcoin could break above its current resistance. Having said that, analysts noted that altcoins may also benefit from this rotation.