Bitcoin Surpasses $94K with Diminishing Correlation to Stock Markets

Bitcoin has surpassed $94K, showing signs of decoupling from stock indices. It has notably decreased its correlation with the Nasdaq and S&P 500, dropping to around 0.34. Bitcoin experienced a 2.97% daily increase, with trading volume rising significantly. However, futures open interest declined, indicating reduced leveraged positions among traders.

Bitcoin surpassed the $94,000 milestone, reaching a peak of $94,535.73 before retreating to approximately $93,406.06. This increase occurs amidst an unpredictable economic landscape influenced by President Donald Trump’s trade policies. Additionally, Bitcoin is demonstrating a notable decline in its correlation with major stock indices like the Nasdaq and S&P 500.

In the latest trading session, Bitcoin’s price ranged from $90,455.69 to $94,535.73. At present, it has risen by 2.97% over the previous day and has recorded a 10.09% increase in the last week. Trading volume surged by 19.93%, reaching $52.74 billion, while market capitalization rose by 2.16% to $1.83 trillion. Despite these gains, Bitcoin’s market dominance decreased slightly to 64.30%, indicating a relative rise in altcoin traction.

Futures trading presented a mixed scenario as total BTC futures open interest fell by 6.03%, landing at $63.94 billion, hinting at reduced leveraged positions. In the past 24 hours, approximately $10.33 million worth of positions were liquidated, primarily affecting long traders, who faced losses of $8.74 million, compared to $1.59 million from short positions.

Historically, Bitcoin had a strong positive correlation with stock markets, often exceeding a 30-day Pearson correlation coefficient of 0.80 with the Nasdaq and S&P 500 earlier in April. However, this coefficient has declined to about 0.34 and 0.35, respectively. This reduction suggests a significant divergence of Bitcoin from traditional equities, potentially marking its evolution into a preferred safe haven asset during economic volatility.