Bitcoin Stock Correlation Hits Post-FTX Low
Bitcoin stock correlation drops to its weakest level since 2022 as gold surges 51% and S&P 500 gains 7%, per Santiment data.
- Bitcoin stock correlation falls to lowest level since 2022.
- Gold jumps 51% while Bitcoin drops 43% in six months.
- S&P 500 posts modest 7% gain amid divergence.
The relationship between Bitcoin and traditional equities is changing once again. According to data from Santiment, Bitcoin is now trading at its weakest correlation with stocks since the FTX collapse in late 2022.
Over the past six months, Bitcoin has fallen 43%, while gold has surged 51%. During the same period, the S&P 500 has managed a 7% gain. This sharp divergence shows that Bitcoin is no longer moving in sync with the broader stock market the way it did during previous macro-driven cycles.
For much of 2022 and 2023, Bitcoin closely followed tech stocks, often reacting to interest rate decisions and inflation data in similar ways. Now, that pattern appears to be breaking.
Gold Outperforms as Safe Haven
While Bitcoin struggles, gold has seen strong momentum. The 51% surge highlights growing investor interest in traditional safe-haven assets. This shift may signal caution in the broader market.
Historically, Bitcoin has been described as “digital gold.” However, current price action tells a different story. Instead of moving alongside gold during uncertainty, Bitcoin has weakened while gold strengthens.
The Bitcoin stock correlation drop suggests that crypto markets are currently driven by different forces than equities or commodities. Regulatory concerns, liquidity shifts, and market structure changes could all be influencing this divergence.
What This Means for Investors
The falling Bitcoin stock correlation could have mixed implications. On one hand, lower correlation may improve diversification benefits for investors holding both crypto and stocks. When assets move independently, portfolio risk can be reduced.
On the other hand, Bitcoin’s 43% decline shows that decoupling does not automatically mean positive performance. Market sentiment, capital flows, and broader economic conditions still play major roles in price action.
If this trend continues, Bitcoin may begin establishing a more independent identity within global markets. Whether that leads to stability or further volatility remains to be seen.
For now, one thing is clear: the Bitcoin stock correlation is at its lowest point since the FTX-era turbulence, marking a significant shift in the relationship between crypto and traditional finance.
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