BTC could rebound alongside US stocks, says analyst

An analysis suggests that Bitcoin could rebound by re-establishing its correlation with U.S. stocks. According to on-chain analytics firm Santiment, Bitcoin has decoupled from the U.S. stock market over the past six months, reaching its lowest correlation since the collapse of FTX. The firm noted that since August of last year, gold has risen 51% and the S&P 500 has gained 7%, while Bitcoin has fallen 43%. Historically, Bitcoin rose in tandem with the stock market during periods of low interest rates and economic expansion in 2021 and 2024, and declined alongside stocks during the rate-hike cycles of 2018 and 2022. In November 2022, the combination of interest rate hikes and the FTX bankruptcy caused a sharp drop to $15,700. Santiment concluded that when two historically correlated assets decouple, they often recouple in response to shifts in the macroeconomic environment and investor sentiment. If this pattern repeats, Bitcoin could see a significant rebound.