$TRUMP The relationship between Bitcoin (BTC) and traditional financial markets is a dynamic and evolving one. Here's a breakdown of their interactions and key considerations:
Historical Correlation:
* Historically, Bitcoin showed little correlation with traditional assets like stocks. It was often seen as a distinct asset class with its own drivers.
* However, since around 2020, the correlation between Bitcoin and risk assets, particularly the S&P 500 and Nasdaq, has increased, especially during periods of high liquidity. This suggests that Bitcoin has, to some extent, become more integrated into the broader macroeconomic environment.
