Bitcoin’s Stock Correlation Hits 2022 Lows — Why That Could Be Bullish

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24-hour performance of US stocks. Source: Financial Visualizations

Bitcoin’s correlation with traditional markets has dropped to its weakest level since late 2022. The daily correlation coefficient with the S&P 500 currently sits around 0.32, while its correlation with gold has turned negative at approximately -0.45. Over the past six months, gold has surged more than 50%, equities gained modestly, and Bitcoin has declined sharply — marking an unusual divergence.

According to on-chain analytics firm Santiment, such dramatic dislocations historically do not last forever. When assets that typically move together separate this sharply, reversion often follows — and that has previously resulted in significant upside for Bitcoin and altcoins. If BTC resumes its historical pattern of tracking equities during expansionary cycles, analysts suggest it may have substantial room to catch up.

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