Bitcoin rose toward $66,000 on Wednesday, recovering alongside a rebound in U.S. stock markets. The rally coincided with $258 million in net inflows for Bitcoin ETFs and a key indicator suggesting renewed buying interest from U.S. investors. Analysis notes Bitcoin’s correlation with stocks and gold is at its weakest since late 2022, a historical divergence that has often preceded significant upside for cryptocurrencies.
Bitcoin recovered above $66,000 on Wednesday following gains in U.S. equity markets. The tech-focused Nasdaq led the recovery with a 1.05% gain, while the S&P 500 and Dow Jones also closed higher.
Crypto-related stocks like Coinbase and MicroStrategy saw moderate gains. The Bitcoin Coinbase Premium Index flipped positive, which an analyst said indicates U.S. buyers are stepping in.
This return of U.S. demand was reflected by Bitcoin ETFs, which recorded $258 million in net inflows on Tuesday. The swift recovery in equities appears to have eased negative pressure on crypto investors looking to cut risk exposure.
Bitcoin’s daily correlation with the S&P 500 is currently 0.32 and -0.45 with gold. Onchain data provider Santiment stated this marks the weakest correlation since the FTX chaos in late 2022.
“Historically, when an asset that is usually correlated breaks away in this dramatic fashion, it typically does not stay disconnected forever,” Santiment said. The firm added that “In the long term, this unusual separation actually argues for significant upside for Bitcoin and altcoins.”
Darius Sit, founder of QCP Capital, argued the divergence reflects position unwinds and leverage-driven flows. Sit stated that “Bitcoin still behaves like a long-term inflation hedge and an increasingly legible form of collateral.”
