Bitcoin (BTC USD) has often traded in tandem with the US stock market indices, the Nasdaq Composite and S&P 500.
However, onchain data analytics provider CryptoQuant has revealed a negative correlation between Bitcoin and Nasdaq.
The price of Bitcoin has increased by over 10% over the past week, whereas the Nasdaq plummeted drastically, within the same period.
Insight on the Chart Decoupling
CryptoQuant shared a screenshot of the BTC and S&P 500 Index correlation in an X post.
The chart shows that the historical correlation between BTC USD and the stock market has broken. The stock market and BTC are now moving in quite the opposite direction.
CryptoQuant analyst oinonen_t noted that the Bitcoin correlation with Nasdaq, which stood at 0.91 in January, has reduced to 0.83.
Image Source: CryptoQuant on X
Likewise, the correlation with the S&P 500 has dropped to 0.77 from 0.88 in late 2024.
Bitcoin’s price has remained relatively stable since US President Donald Trump declared a pause on global tariffs.
The flagship coin is up 10.3% in the past week. The weekly spike comes as Bitcoin continued recouping its losses from ‘Liberation Day,’ rising 3.3% to $90,750.
Meanwhile, traditional assets shuddered. The Nasdaq and S&P 500 indexes have declined by 4.6% and 5.2%, respectively, in the past month.
Bitcoin’s decoupling from traditional “risk-on” assets marks the beginning of a significant shift.
It indicates Bitcoin’s unique value proposition as a scarce, decentralized, and globally accessible asset is increasingly resonating with investors.
As more investors adopt Bitcoin amid ongoing geopolitical tensions, BTC’s price is expected to hit a new all-time high.
BTC USD Correlation to Nasdaq Turns Positive
Mike McGlone, a Senior Community Strategist at Bloomberg Intelligence, has drawn attention to Bitcoin’s 100-day correlation to the Nasdaq. He noted that the correlation has turned favorable to 0.52.
Image Source: Mike McGlone on X
This value marks a massive move from the negative value recorded in 2019 (before the largest money pump in history).
During this period, the correlation fell to -0.10. It is important to note that the 100-day correlations often turn negative during or following substantial Bitcoin drawdowns.
Simply put, a “positive” correlation indicates that Bitcoin and Nasdaq are moving in the same direction.
On the other hand, a negative correlation shows the assets are moving in the opposite direction.
Market Analyst Spotlight Bullish Signal
BTC USD price was trading at $93,529 at press time, up 0.13% over the past 24 hours. While Bitcoin has moved past key crucial levels, market analysts claim more rallies lie ahead.
Popular onchain analyst Ali Martinez has spotlighted a key bullish signal for the leading cryptocurrency.
Image Source: Ali Charts on X
The analyst noted that a golden cross pattern has formed between the MVRV Ratio and its 365-day SMA. Ali claims this pattern could indicate the continuation of an ongoing Bitcoin bull run.
Notably, a golden cross happens when a short-term moving average crosses above a long-term moving average, signaling potential sustained upward momentum.
Market analysts point to the $92,000 level as critical support on the BTC Chart.
With Bitcoin currently holding above this key support, the golden cross of the MVRV and 365-day SMA could reinforce bullish sentiment.
Bitcoin could easily cross the $100,000 psychological level in the next few days.
