Bitcoin Rallies with Tech-Driven US Stock Market
On February 25, Bitcoin saw a notable rebound, closely aligning with the broader U.S. stock market. The Nasdaq Composite, heavily weighted toward tech stocks, gained 1.05%, while the S&P 500 rose 0.68%. The Dow Jones Industrial Average climbed 0.86% on Tuesday. Market analysts note that the strength in technology and AI-related sectors has been a key driver of this upward momentum.
Decoupling from Gold Signals Potential Upside
A significant trend has emerged as Bitcoin’s correlation with gold drops to its lowest since the FTX collapse in 2022. Gold has surged over 51% in the past six months, while Bitcoin has declined by 43%. On-chain analytics firms suggest this divergence historically precedes substantial price gains for Bitcoin.
Institutional Flows Return Amid Changing Market Dynamics
In addition, a major exchange's premium index turned positive for the first time since January 15, accompanied by $258 million in net inflows into spot ETFs. This signals a return of institutional buying interest. Industry experts argue that the current divergence reflects short-term shifts in positioning and liquidity, rather than any fundamental weakness in Bitcoin’s long-term outlook.