Bitcoin Stages Decoupling From Nasdaq as Price Prints Solo Rally

Bitcoin is showing a decoupling from major stock indices like the Nasdaq, a trend that might continue to fuel its possible rally without the stock market’s influence.

In an X post, blockchain analytics platform CryptoQuant pointed out the recent Bitcoin (BTC) decoupling from the Nasdaq stock index. This decoupling cycle may affect the price of the leading cryptocurrency, which has registered some price recovery over the past few days.

Bitcoin Decoupling From S&P and Nasdaq 

CryptoQuant hinted that the correlation of Bitcoin with the S&P 500 hit 0.88 in the last quarter of  2024. However, it has recorded a slip to 0.77 within the previous seven days. However, the correlation of the coin with the Nasdaq Composite has reduced from 0.91, observed in January, to the current level of 0.83. 

Notably, this separation from the S&P 500 and Nasdaq Composite indicates that the coin’s correlation to traditional and technology-related stocks is gradually waning. Conversely, Bitcoin’s correlation with gold has increased from the -0.62 coefficient seen early this month to the current -0.31. 

This may be because Bitcoin shares its scarcity attributes with gold, although the former is scarcer. Also, BTC tends to follow the gold trajectory, showing lag in only a few months. Should the decoupling persist, the metal asset may serve as a top indicator for the flagship cryptocurrency. 

Bitcoin Records Laudable Price Gain

Bitcoin has gained momentum in the last few days, following rumors of a potential change in the US-China tariff policies. 

The coin has risen by more than 10.2% against the dollar in the past 7 days. CoinMarketCap data shows that Bitcoin was trading at $92,090.78. This price level shows a 1.46% rally in the past 24 hours, as major metrics, including trading volume, soar. 

The current outlook and performance of the top coin are attributed to some factors, including the weakening dollar. The dollar and BTC are inversely correlated; hence, when one weakens, the other increases. 

The pivot in US government administration could catalyze a further Bitcoin price rally. Newly appointed SEC Chair Paul Atkins’s announcement that he plans to focus on crypto is part of this administration’s effort.

Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.