#BTCvsMarkets Bitcoin (BTC) often moves independently of traditional markets, but correlations shift. During risk-off periods, BTC may trade like a speculative asset, falling with stocks. In bullish phases, it decouples, driven by adoption, halvings, or macro trends like inflation hedging.
In 2024, BTC’s 120% surge outpaced the S&P 500’s 14% gain, fueled by ETF approvals and institutional demand. However, Fed policy shifts can synchronize BTC with markets temporarily. Long-term, BTC’s fixed supply and decentralization may reinforce its "digital gold" narrative, diverging from equities. Short-term, expect volatility; long-term, scarcity could dominate. Key drivers: macro liquidity, regulation, and adoption.
