The correlation between Bitcoin and the Nasdaq 100 has been a key aspect of investors' portfolios for years. However, this long-standing relationship has fractured dramatically in recent times, with a new report revealing a 70 percentage point gap in returns between the two assets.
This marks the most significant decoupling since the crypto bear market of 2019 and challenges traditional hedging strategies based on Bitcoin's relationship with equities. According to CNBC's analysis, Bitcoin has fallen 35% from its peak relative strength against the Nasdaq 100 roughly one year ago, while the Nasdaq has rallied approximately 35% over the same period.
The divergence is attributed to several factors, including macroeconomic pressures such as rising interest rates and tighter liquidity conditions. Regulatory uncertainty in the United States and a shift in investor sentiment toward safer assets have also contributed to Bitcoin's underperformance.