Bitcoin Diverges from Stocks to Widest Degree in Nearly a Decade
Bitcoin market analyst Willy Woo has pointed out that the cryptocurrency's relationship with stocks is at its widest divergence in nearly a decade, potentially mirroring an early stage of the cycle that led to the 2017 bull market.
In a chart shared on X, Woo compared the long-term correlation between Bitcoin and the S&P 500, showing that BTC has decoupled from stocks to a similar degree as it did in 2015, before the 2017 bull run.
Woo also noted that 2014 saw stocks remaining bullish while Bitcoin experienced an uncorrelated bear market. In contrast, 2015 and 2016 were characterized by BTC engaging 'bull mode' while equities chopped bearish, before both markets aligned in 2017.
The setup currently looks similar, Woo said, with BTC liquidity strengthening while equities show signs of fragility.