Bitcoin is decoupling from US stocks to become a hybrid asset: Analysis

Bitcoin is decoupling from the U.S. stock market and beginning to evolve into a hybrid asset, according to an analysis by CryptoQuant contributor XWIN Japan. The contributor noted that while BTC and the S&P 500 moved in the same direction from 2020 to 2022, Bitcoin has shown significant volatility since 2025, unlike the stock index. Based on net spot purchases and ETF fund flows, BTC is now reacting more strongly to liquidity cycles and institutional demand. "This suggests that BTC is evolving from a simple risk asset into a hybrid asset that is sensitive to macro liquidity while following its own unique market structure," XWIN Japan wrote. The contributor predicted that if the Fed's monetary policy easing coincides with a weaker U.S. dollar and a resumption of ETF inflows, BTC could emerge as an alternative asset that absorbs liquidity independently, rather than simply following tech stocks.