Bitcoin decouples from equities as correlation hits two-year low

For years, Bitcoin traded like a leveraged tech stock. When the Nasdaq sneezed, Bitcoin caught pneumonia. That relationship appears to be fracturing in a meaningful way. The correlation between Bitcoin and US equities has dropped to its lowest point since the November 2022 FTX collapse, according to Santiment data. The 30-day rolling correlation dipped to -0.299 in December 2025 and settled around 0.18 in January 2026. Diverging paths tell the story The numbers paint a striking picture of two asset classes going their separate ways. From late August 2025 to early 2026, Bitcoin’s price fell roughly 43%. Over a similar stretch, the S&P 500 gained about 7%. Gold, meanwhile, surged 51%. After reaching an all-time high of approximately $126,000 in October 2025, Bitcoin experienced a pullback exceeding 50% by mid-2026. Three-month rolling correlations have also drifted near zero around mid-2026, reinforcing that this isn’t just a short-term statistical blip. What’s driving the split Analysts point to post-ETF deleveraging as a primary catalyst. After the initial wave of spot Bitcoin ETF enthusiasm, the derivatives market cooled significantly. Reduced leverage means Bitcoin’s price mo...