Bitcoin-stock correlation signals dollar weakness, not risk appetite

Bitcoin’s rising correlation with U.S. equities reflects concern over U.S. dollar fragility, not increased investor risk appetite, according to RedStone Oracles, cited by Cointelegraph. The 30-day correlation with the S&P 500 recently topped 0.4—its highest since 2020—while the Dollar Index fell to a 12-month low. Analysts argue this trend points to weakening trust in U.S. monetary policy and fiscal discipline, with investors seeking scarce assets like Bitcoin and stocks as a hedge. The shift highlights growing concerns about inflation, rising debt and de-dollarization, with institutional and sovereign players exploring alternatives to fiat-backed holdings.