Bitcoin Just Broke Its Correlation With Gold, Stocks, and the Dollar: What Changed?

Bitcoin's latest rally put it in a different trajectory than all other financial assets. Bitcoin’s relationship with traditional markets has changed sharply in a matter of weeks, with Santiment data showing that its correlations with stocks, the greenback, and even gold have all weakened. The part with gold is particularly interesting, as both assets recently moved at the same pace, but BTC now appears to be trading far more independently of all major comparison alternatives. BTC Breaks Away Santiment’s analysis highlighted the breakdown in bitcoin’s correlations with major assets, including the precious metal and US equities, indicating that the cryptocurrency is no longer moving closely alongside any of them. This major change materialized over the past several days, after BTC rebounded from the dip to $75,000 following the failure of the CLARITY Act vote and surged to a multi-month peak of over $87,000. The shift is quite striking because the opposite narrative, especially when compared to gold, dominated only a few weeks ago. As reported in early September, BTC’s 90-day correlation with the precious metal had climbed above 0.50 for the first time in approximately six years. The...