$BTC relationship with the broader market, particularly the stock market, is a complex and evolving one. Here's a breakdown of key aspects:

Correlation:

Increasing Correlation: Historically, Bitcoin has shown a relatively low correlation with traditional assets like stocks. However, in recent times, particularly since institutional adoption has increased, the correlation between Bitcoin and the S&P 500 and Nasdaq has strengthened.  

Amplified Movements: Some analysis suggests that Bitcoin acts like a leveraged version of the stock market. It tends to move in the same direction as major stock indices but with greater volatility, experiencing larger percentage gains during market upswings and steeper losses during downturns.