Bitwise Research Director: Bitcoin and S&P 500 correlation rebounds, diverging from trend shift

Data shows that Bitcoin's correlation with the S&P 500 has rebounded to 0.88, indicating a re-synchronization between the two markets, marking a turnaround from the previous divergence between the two (Bitcoin has risen 47% since Trump's election, while the S&P 500 has risen only 4%). Andre Dragosch, head of European research at Bitwise, attributed the re-emerging correlation to macroeconomic factors, including the Federal Reserve's revised rate cut forecasts and a stronger dollar, which continue to weigh on cryptocurrencies and traditional markets. Despite Bitcoin's strong on-chain support, its movements are increasingly influenced by broader market trends, suggesting that there may be short-term risks ahead. (CoinDesk)