Bitcoin Breaks Free from Months-Long Underperformance Streak

Bitcoin has finally broken free from its months-long trend of underperforming US equities. The cryptocurrency surged by an impressive 25% in just two days, reaching nearly $80,000 after bottoming out at around $65,000.

This sudden price recovery is all the more remarkable given that BTC had been struggling to keep pace with the S&P 500 for months. According to Glassnode, bitcoin only outperformed the index on about one-third of trading days over the last three months, marking its longest streak of relative underperformance in six years.

However, the tides have started to change. On Monday, the S&P 500 slipped by over 0.5%, while bitcoin posted a notable 2% increase, a rare occurrence during this period. The major run on Wednesday confirmed the changing trend, with both the S&P 500 and Nasdaq snapping their three-week winning streak.

While it's premature to conclude that there's a decisive decoupling between BTC and US equities, the cryptocurrency has finally moved in the right direction. Gaining over 25% weekly and reaching a three-month peak while US equities marked their first losing week in a month speaks loudly and clearly.