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Correlation History That Takes Bitcoin to the Summit in 2024 Is at Historic Levels: Expectations Are Increasing! - Coin Bulletin
Cryptoquant analyst warned investors by stating that Bitcoin is historically correlated with US stock markets at a record level.
According to information conveyed by Cryptoquant analyst Darkfost, Bitcoin continues to move in a strong correlation with the performance of US stock exchanges in recent times. It was stated that in 2024, the correlation between Bitcoin and the Nasdaq index reached historic levels with (BTC) and reached an unprecedented high today.
A similar trend has been observed for the S&P 500 index, although it is noted that there have been periods of short-term divergence.
Darkfost emphasized that this increasing correlation indicates that institutional investors are increasingly starting to see Bitcoin as a more traditional asset class and are moving in line with trends in the US markets.
An analyst pointed out that the increasing interest of institutional investors in Bitcoin could accelerate the adoption process of the cryptocurrency.
In addition, with the involvement of the Trump administration in the US, it was stated that the expectations for easing regulations such as SAB 121 could strengthen Bitcoin's position as a recognized asset class among institutional investors.
Darkfost pointed out that this could be a turning point for the future of the cryptocurrency market.
Experts have stated that Bitcoin’s increasing connection with traditional markets could create new opportunities for both cryptocurrency investors and institutional investors, while also emphasizing that market volatility may continue and investors need to prioritize risk management.