Bitcoin – the largest cryptocurrency in the world – is showing signs of outperformance compared to stocks in recent weeks. While the S&P 500 and Nasdaq are undergoing sharp corrections, Bitcoin has surged to nearly $93,000, increasing about 7% in just one day. This raises the question: Is Bitcoin really decoupling from risk assets like stocks and becoming a 'safe haven' like gold?
Bitcoin surged while stocks plummeted
The latest developments in the market indicate a clear divergence between Bitcoin and major stock indices. In the recent trading session:
Bitcoin rose nearly 7%, reaching $93,000.
The S&P 500 and Nasdaq both fell 3%.
Gold also increased alongside Bitcoin.
The US dollar index (#DXY ) weakened after President Donald Trump pressured the Federal Reserve (Fed) to cut interest rates.
The reason Bitcoin surged is believed to stem from comments by US Treasury Secretary Bessent that the trade war with China is unsustainable and will soon cool down, paving the way for Bitcoin to go against the trend of traditional financial markets.
Is the correlation between Bitcoin and stocks changing?
In the past, Bitcoin often moved in tandem with the stock market, especially during sell-offs due to macroeconomic concerns. However, recent data is revealing a change:
The 30-day correlation between Bitcoin and the S&P 500 is currently at 0.65, lower than in previous periods.
Bitcoin is exhibiting a trend more akin to gold than to stocks – a sign that investors are redefining the role of this digital asset.
David Duong – Research Director at Coinbase Institutional – stated: "Concerns about the depreciation of the USD, soaring US public debt, and unpredictable actions from Trump are causing investors to turn to $BTC as a defensive channel."
But is this 'decoupling' sustainable?
Although recent signals are impressive, many experts remain cautious in assessing whether Bitcoin has truly 'detached' from the traditional market.
Jake Ostrovskis – OTC trader at Wintermute – warned: "The main driver of this increase may just be due to the weakening USD. If the greenback stabilizes, Bitcoin may lose momentum and revert to its previous correlation with stocks."
Similarly, Duong also noted: "To affirm that Bitcoin has truly transitioned to a defensive asset role, we need to see this trend continue across various market conditions – not just during sell-offs or macroeconomic concerns."
In other words, the current decoupling could merely be a short-term cycle, insufficient to confirm a long-term shift in market perception.
Contact with the crypto market and Binance users
This event once again highlights the increasingly prominent role of Bitcoin in the global financial ecosystem, especially as investors seek traditional alternatives like USD or securities.
For users on Binance, this is a time worth observing and reassessing portfolio allocation, especially as Bitcoin begins to show 'safe-haven' characteristics like gold – a trait that the crypto community has anticipated for many years.
However, one should not be overly confident in the short-term trend, as financial markets are always full of surprises and depend on unpredictable macroeconomic factors such as monetary policy, geopolitical issues, or statements from major leaders like Trump.
Risk warning
Although Bitcoin is showing superior strength, this does not guarantee future profits. Volatility has always been an inherent characteristic of digital assets.
Investing in cryptocurrency always carries high risks and is not suitable for everyone. Please consider carefully before participating and do not invest money you cannot afford to lose.