Bitcoin (BTC) often moves independently from traditional markets, offering a unique dynamic for investors. While stock markets respond to earnings, interest rates, and economic data, Bitcoin is driven by supply-demand, regulatory news, and crypto sentiment. During times of economic uncertainty, BTC is sometimes seen as a "digital gold" hedge, though it can also show high volatility. Unlike stocks, BTC trades 24/7 and lacks centralized regulation. Correlations between BTC and the stock market vary—sometimes moving together in risk-on environments, and other times diverging sharply. Overall, BTC provides diversification potential, but comes with greater price swings and speculative risk.
