Bitcoin's Stock Market Correlation Hits Lowest Point Since FTX Crash

Bitcoin's price has been experiencing a downtrend alongside other cryptocurrencies over the past few months, taking its price below $70,000. According to Santiment, the number one digital asset is currently down 43% compared to six months ago. This trend is a departure from the historical correlation between Bitcoin and traditional markets.

The S&P 500 has seen a 7% increase in value over the same period, while Bitcoin has sharply underperformed. Historically, when an asset breaks away from its usual correlation, it typically does not stay disconnected forever. This is evident from the previous FTX crash in 2022, where Bitcoin's price diverged from traditional markets only briefly.

Bitcoin's decoupling from the S&P 500 and Gold, which is often considered its digital analogue, has been a persistent trend. The correlation metric between BTC and Gold has also plummeted into negative territory, indicating that they are moving in opposite directions. This has led to speculation about whether this decoupling will last.