Cryptos Refuse to Join Risk Rally Amid Regulatory Uncertainty

Crypto markets are trading flat, refusing to join the broader risk rally. Despite US equities hitting all-time highs on Wednesday, Bitcoin and Ether remained stagnant at around $64,000 and $1,800 respectively.

This divergence between cryptocurrencies and traditional risk assets has been a recurring theme in 2026. Unlike previous market cycles, Bitcoin has failed to mirror gains in US equities, while also attracting limited safe-haven demand.

The correlation matrix highlights this shift, showing little relationship between Bitcoin and the US100 or US500 over the past six months. However, Bitcoin has exhibited a moderately positive correlation with gold, indicating that geopolitical uncertainty and crypto-specific factors have had a greater influence on price action than broader risk sentiment.