The price of Bitcoin had a mixed yield last week, increasing to a new historical maximum at some point before stabilizing around the $ 105,000 brand. While the price action could have been somewhat slow last week, there is a positive feeling around the main cryptocurrency, something missing in the first two weeks of 2025.
This recent outbreak of optimism has seen that the largest cryptocurrency in the world for market capitalization continues to spread its wings in global financial markets. Interestingly, the latest data shows that the correlation between the price of Bitcoin and the United States stock market has reached a new maximum.
What does the growing correlation mean for BTC and investors?
In a quick publication on the cryptocation platform, an analyst of the Darkfost pseudonym revealed that Bitcoin’s price has remained closely linked to the performance of the United States stock market. According to Cryptoquant data, the correlation between the price of BTC and the Nasdaq index reached a new historical maximum on Saturday, January 25.
For clarity, the Nasdaq compound is a stock market index that tracks the value of almost all the actions that appear in the Nasdaq stock exchange. Together with the S&P 500 and the Dow Jones Industrial Avenge, Nasdaq is located as one of the most popular stock market rates in the United States.
Source: CryptoQuant
Darkfost stressed that the price of Bitcoin and the Nasdaq index exhibited a historically strong correlation in 2024, continuing this trend in the New Year. Similarly, the price of BTC and the S&P 500 index have been closely linked in the last year, although there have been short periods of decoupling.
According to Quicktake analyst, the growing correlation suggests that institutional players are now more open to BTC as asset class, aligning their performance with traditional market trends.
Darkfost added:
With Trump now in charge, the expectations of the facilitated regulations, such as the rescinding of SAB 121, could further strengthen Bitcoin’s position as a class of assets recognized among institutional investors, which can accelerate their adoption.
The relationship between Bitcoin stock markets and the United States has always been interesting, since they provide various investment opportunities. However, it is considered a strong correlation between these two kinds of assets to reduce the diversification opportunities they often offer investors.
Bitcoin price at a glance
At the time of writing this article, the price of BTC is around $ 104,900, which does not reflect a significant price movement in the last 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Outstanding image created by Dall.E, TrainingView graphics
