Bitcoin Correlation With The S&P500 Drops To Zero – Will History Repeat?

Bitcoin’s short-term price direction remains uncertain, with divided opinions among analysts and investors. Some expect a breakout into all-time highs (ATH) above $109K, while others fear increased selling pressure that could send BTC into lower demand zones. The price has been trading in a narrow range for the past twelve days, holding above $94K and below the $100K mark, leading to speculation about the next move.

Data from IntoTheBlock shows a significant shift in Bitcoin’s market behavior: its correlation with the S&P 500 has dropped to zero, indicating no current linkage between the two assets. Historically, BTC has moved in tandem with the stock market, reacting to macroeconomic events, interest rate policies, and risk-on/risk-off sentiment. However, this decoupling suggests that BTC is now trading based on its own internal market dynamics, rather than following traditional financial markets.

Could this signal the start of another massive rally, or is Bitcoin simply moving into a more speculative and unpredictable phase? The coming weeks will be crucial in answering that question.