The S&P 500 index has lost more than 2,700 points in the last two days as risk assets record a brutal selloff due to President Trump’s trade policies. However, Bitcoin price has recorded a moderate decline of 5.51% and shows signs of recovery. This discrepancy has led to investors wondering whether it is decorrelation from the US stock market or the price is just lagging.
Amid these shifting dynamics, let’s explore a Bitcoin price prediction and the key levels to watch.
BlackRock’s Decorrelated Asset for Bitcoin Price Comes True as BTC Decouples From S&P500
The below chart clearly shows the disparity between Bitcoin price and S&P500, the two risk-on assets that are being shaped by macroeconomic and Trump’s policies. While S&P500 is down -10.74% since Wednesday, BTC’s value hovers around -3.15%.
Did Bitcoin price decorrelate from the stock markets and behaving as an uncorrelated asset that investors can flock to in times of market turmoils?
A popular crypto analyst, with username fewseethis, noted after recent Bitcoin price crash, “an uncoupling of this magnitude would be quite historic if it holds.”
A popular crypto influencer Pete Rizzo confirmed that the Wall Street is realizing that “ Bitcoin is an uncorrelated asset backed by energy.”
To add credence to this outlook, BlackRock CEO Larry Fink has always considered Bitcoin as an “uncorrelated asset.”
In an interview with CNBC’s Jim Cramer, Larry Fink said,
“Bitcoin is legitimate financial instrument that allows you to have uncorrelated returns.” The CEO also added that BTC is an instrument that you invest in “when you are frightened and countries are debasing their currencies by excess deficit.”
Is Bitcoin Actually Decorrelating From S&P500 and US Stock Market?
While some are optimistic, others are skpetical about this “decoupling.” Collie, another crypto analyst added that this isn’t decorrelation but lag.
“This looks like the most obvious lagging situation. Happy to be wrong and buy higher but glhf to those longing into the weekend”
Dom, a crypto trader posted his observation of Bitcoin price strength against Nasdaq100. While BTC is up 1.8% NDX is down 9.77%.
“Considering the high correlation of these over the last few years, this is surprising The floor fell out on stocks this week, but not on BTC.”
The trader further went on to suggest this weekly divergence has happened six times and over the course of the next three months, Bitcoin price has almost always produced positive gains.
In conclusion, if Bitcoin is decorrelating from the US stock market, this could be a bullish sign that hints at massive gains in the near future. In such a case, investors can expect a sweep of the $80K key psychological level to kickstart a bull run to first critical resistance level at $90K followed by $100K and the ATH at $110K.
However, if BTC is not decoupling but lagging, then a breakdown of $80K and a flip of this key support into a resistance level will be the next bearish signal. Such a development could see Bitcoin price crash down to $70K or $69K support levels.
Frequently Asked Questions (FAQs)
Bitcoin price has decoupled from S&P500, with BTC down only 5.51% while S&P500 crashed 12% over the past three days.
Some analysts believe this could be a historic decorrelation, while others think it’s just a lag, and Bitcoin price will eventually follow the stock market downturn.
BlackRock CEO Larry Fink considers Bitcoin an “uncorrelated asset” that provides a hedge against market turmoil, while some analysts note that similar divergences have led to positive gains for Bitcoin price in the past.
Akash Girimath
Senior Cryptocurrency Analyst & Market Strategist
Engineer-turned-analyst Akash Girimath delivers data-driven insights on cryptocurrency markets, DeFi, and blockchain technology for platforms like AMBCrypto and FXStreet. Specializing in technical analysis, on-chain analytics, and risk management, he empowers institutional investors and retail traders to navigate market volatility and regulatory shifts.
A hands-on strategist, Akash merges active crypto portfolio management with research on Web3, NFTs, and tokenomics. At AMBCrypto, he led cross-functional teams to redesign content frameworks, achieving record-breaking traffic growth through scalable editorial strategies. His analyses dissect market sentiment, investment strategies, and price predictions, blending macroeconomic trends with real-world trading expertise.
Known for mentoring analysts and optimizing workflows for high-impact reporting, Akash’s work is cited across global crypto publications, reaching 500k+ monthly readers. Follow his insights on YouTube, X, and LinkedIn for cutting-edge perspectives on decentralized ecosystems and crypto innovation.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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