Bitcoin Surges Above $66,000 Amid Renewed ETF Inflows and Weakening Correlations

Bitcoin's price has seen a significant increase, reaching above $66,000, following renewed investment in exchange-traded funds (ETFs). This development comes as data indicates a weakening correlation between Bitcoin and traditional markets. Historically, such dislocations have not lasted, with market rotations and shifting capital flows tending to restore correlations over time.

According to on-chain data from Santiment, Bitcoin's price has dropped 43% in the past six months, marking its weakest correlation with equities since late 2022. However, if the cryptocurrency begins to track equities again during a potential economic expansion, particularly if rate cuts materialize in late 2025, it could have substantial ground to recover.