The valuation of Bitcoin exhibited a varied trajectory over the past week, escalating to a new historic peak at one point before settling around the $105,000 threshold. Although the price movement may have been relatively lethargic over the last seven days, there is an increasing favorable sentiment surrounding the leading cryptocurrency — a sentiment that was lacking in the initial fortnight of 2025.
This recent wave of positivity has allowed the globe’s largest cryptocurrency by market capitalization to further expand its presence in the worldwide financial markets. Notably, recent statistics indicate that the connection between the Bitcoin price and the United States stock market has reached unprecedented levels.
What Does Increasing Correlation Imply For BTC And Investors?
In a Quicktake entry on the CryptoQuant platform, an analyst known by the alias Darkfost disclosed that the Bitcoin price has maintained a strong connection with the performance of the United States stock market. Based on data from CryptoQuant, the correlation between the BTC price and the NASDAQ Index attained a new all-time high on Saturday, January 25.
To clarify, the NASDAQ Composite is a stock market index that monitors the value of nearly all stocks listed on the Nasdaq stock exchange. Together with the S&P 500 and the Dow Jones Industrial Average, NASDAQ is regarded as one of the most prominent stock market indices in the United States.
Source: CryptoQuant
Darkfost emphasized that the Bitcoin price and the Nasdaq index demonstrated a historically robust correlation in 2024, continuing this pattern into the new year. Likewise, the BTC price and the S&P 500 index have been closely correlated in the prior year, despite some brief instances of divergence.
The Quicktake analyst noted that the increasing correlation implies institutional investors are becoming more receptive to BTC as an asset category, aligning its performance with traditional market dynamics.
Darkfost remarked:
With Trump now at the helm, anticipations of relaxed regulations, such as the reversal of SAB 121, could further reinforce Bitcoin’s standing as an acknowledged asset category among institutional investors, potentially hastening its uptake.
The interplay between the Bitcoin and US stock markets has perpetually been intriguing, as they provide varied investment opportunities. Nevertheless, a significant correlation between these two asset classes is perceived to limit the diversification chances they typically provide to investors.
Bitcoin Price Overview
At the time of writing, the valuation of BTC hovers around $104,900, indicating no notable price shifts within the last 24 hours.
The valuation of BTC on the daily chart | Source: BTCUSDT chart on TradingView
Featured image crafted by Dall.e, chart sourced from TradingView
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