Bitcoin appears to have decoupled from the stock market, finally...

[CantLoseHODLing]

...unfortunately, it's not really the way we wanted it to play out. Any ideas on what we can expect to happen next with this relationship?

https://imgur.com/2bxVuyh
https://imgur.com/4x31fK1

[avikz]

I am not sure whether bitcoin has really been decoupled from the stock market. It needs a lot more debate and deep understanding. But I personally would want that to happen!

Bitcoin is not really a mainstream asset. In reality, it has created a parallel economy. So the idea is that people will hold and invest more into bitcoin when the stock market sees a downturn. It's very similar to how gold is being treated by the investors for capital protection.

But as of now, bitcoin has not shown any prominent signs. The volatility is so high, it's actually very difficult to find out whether bitcoin has been decouple or not.

[franky1]

...unfortunately, it's not really the way we wanted it to play out. Any ideas on what we can expect to happen next with this relationship?

its not a decoupling from stock market
its actually the "bitcoin futures" exchanges

where whales put in 'futures' BETS that the price will remain below, for instance $22.5k from 3rd of march
and so those same whales then use another stash of funds to cause resistance on the spot market to ensure their BETS win

 you will see that each 1-8weeks a new "resistance line is drawn that whales want the prices to play with in

whenever you see a flat line for 5days+ on a monthly chart that flat line is the 'futures' whales
december had the line for pretty much the entire month keeping it below a certain price

[Upgrade00]

Has the stock market decoupled from Bitcoin?

[mk4]

It really isn't the first time this happened. Though most of the time — unfortunately, when bitcoin decouples, its on the downside. It's the simple fact that bitcoin is far more sensitive when it comes to news; so positive/negative news tends to be amplified by a lot.

[franky1]

It really isn't the first time this happened. Though most of the time — unfortunately, when bitcoin decouples, its on the downside. It's the simple fact that bitcoin is far more sensitive when it comes to news; so positive/negative news tends to be amplified by a lot.

each new futures trade option period(1-8 weeks) does not always result in the next one being lower
after the december futures bets. the whales relaxed and let bitcoins spot market 'freetrade' to allow it to rise before they put in their january bets


we have to get used to monthly spot market wiggles of

_~~|^~~|_~~|^~~

instead of /\/\/\
                /\
instead of /  \   /
                    \/

[kryptqnick]

The charts are only indicative of the last couple of weeks, or even less than that. If you zoom out to see the last year, the difference is less noticeable, and what's been so far in 2023 looks quite similar for Bitcoin and for S&P 500. These minor fluctuations are IMO not a sign of a decoupling, not yet. Moreover, Bitcoin may still recover from its recent drop, whereas S&P 500 is already somewhat down, at 4,012 rather than 4,045. Honestly, I don't think it means that the stocks are doing better than Bitcoin or that Bitcoin no longer correlates with stocks because we're talking about such a short period of time and have no idea how that will change in a week from now, for example.

[JayTrain]

It's difficult to predict with certainty what will happen with the relationship between Bitcoin and the stock market. However, as Bitcoin continues to gain mainstream adoption and recognition, it's possible that it will become more independent from traditional markets. Additionally, as the regulatory landscape for cryptocurrencies continues to evolve, it could also impact how Bitcoin behaves in relation to the stock market.

[tbct_mt2]

It's difficult to predict with certainty what will happen with the relationship between Bitcoin and the stock market.

The common things between two markets are their sensitivity against news, fud and regulations from SEC and FED.

When those authorities don't launch fud, both markets will move with their own ways and we don't see any mutual correlation between them or very weak correlation.

When two authorities are actively with their fuds and potentially launched regulations, both markets likely react with a same direction and we probably will see their coupled connection that won't last forever.

[mk4]

When two authorities are actively with their fuds and potentially launched regulations, both markets likely react with a same direction and we probably will see their coupled connection that won't last forever.

Not really. Regulatory attacks are mostly(probably 90%) thrown towards the cryptocurrency space as the stock/realestate markets are highly regulated already. If anything, regulatory attacks towards the cryptocurrency space is what makes it move nonparallel to the stock markets.

[pooya87]

Bitcoin was never "coupled" with any market, least of which US Stock Market for it to want to decouple with it. This idea started ever since the global economical crash after the COVID19 pandemic, people thought just because bitcoin dropped while other markets were also dropping, that must mean there is a correlation!

If you look at the 14 years worth of charts you can clearly see that there is absolutely no correlations between bitcoin and any other markets.
However, what happens is that whenever there is a massive economic crash, it also affects bitcoin like everything else in this world.

Besides, even the chart you posted is weird. This year, starting from January bitcoin has gone up more than 60% while S&P500 has been struggling to keep the same level and not massively dump.