Bitcoin (BTC) often behaves independently of traditional markets, making it a unique asset in diversified portfolios. While stocks and bonds are influenced by economic data, corporate earnings, and interest rates, Bitcoin is driven by factors like investor sentiment, adoption trends, and regulatory developments. During periods of financial instability, BTC is sometimes viewed as "digital gold" and a hedge against inflation. However, its volatility and speculative nature also link it to risk-on behavior, similar to tech stocks. Correlation between BTC and the broader market fluctuates, often decreasing during bull runs and increasing in crises. As institutional interest grows, Bitcoin’s connection to mainstream financial markets continues to evolve.
