Bitcoin Defies Gravity With 10.2% Surge—Wall Street Correlation Cracks
Forget ’risk-on, risk-off’—Bitcoin just moonwalked past traditional markets with its sharpest decoupling move since 2021. The 10.2% single-day pump comes as the S&P 500 flatlines, triggering fresh debates about crypto’s maturation (and whether hedge funds will ever understand it).
Decoupling or dead cat bounce?
While analysts scramble to attribute the move—ETF inflows? Macro hedge? Elon tweeted a meme?—the charts show BTC/USD breaking key resistance levels that previously mirrored equity movements. ’This isn’t 2022 anymore,’ quips one trader, as Bitcoin’s 30-day correlation with the Nasdaq hits a 14-month low.
The real test comes next week when the Fed meets. If Bitcoin holds gains while stocks panic over rate chatter, even the most cynical bank analysts might need to rewrite their ’digital gold’ dismissals. Or at least charge clients $500 for a fresh PDF explaining why they were wrong.
Bitcoin shows increasing momentum because it rose 10.2% against the US dollar during a single week. The first cryptocurrency shows convincing signals it might retrace its path to establish a new all-time high. The market structural change now becomes apparent because the token shows signs of breaking away from traditional financial sectors.
S&P 500 Correlation Breakdown
The recent data records a significant reduction in the correlation between Bitcoin and the S&P 500. During late 2024, the correlation coefficient reached 0.88, which demonstrated that Bitcoin maintained a tight connection with the index. The correlation with the S&P 500 registered below 0.5, which led it to reach negative values in April 2025. Statistics reveal a new investor perspective toward Bitcoin that suggests significant changes in its portfolio utilization.
In the chart, the price difference between the S&P 500’s horizontal movement since February stands out sharply because white lines representing Bitcoin prices have displayed upward momentum. The market signals a fresh narrative for Bitcoin because it continues to establish its own trajectory separate from technology and equity trends.
Macro Tailwinds
These price movements are taking place independently of any stimulus in the market. The price of Bitcoin often rises as the US dollar weakens since these currencies experience a historic inverse pattern. Declines in the US dollar currency value attract capital toward alternative assets, including BTC, during times of inflation uncertainty.
Political events on the global stage influence this development path. The tariff policies implemented by the Trump administration created market instability when they first started, but appear to transition into more moderate or reversed approaches. The discussions regarding peace in Ukraine generate a positive response from global investors. Recent market conditions are driving investors toward high-volatility assets such as cryptocurrencies because risk aversion has decreased.
Gold-Like Behavior
The correlation between BTC and gold is currently strengthening as an emerging pattern in the market. The coefficient measurement has risen from -0.62 to -0.31 throughout recent weeks, which supports Bitcoin’s status as an alternative to actual gold. The inflation-resistant nature of BTC, alongside its fixed supply, is making it behave like digital gold, although Bitcoin demonstrates this characteristic later than gold does. The ongoing trend indicates that gold can start producing price movements that lead to BTC price changes.
