{"id":22497,"date":"2025-04-17T08:35:04","date_gmt":"2025-04-17T08:35:04","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=22497"},"modified":"2025-04-17T08:35:04","modified_gmt":"2025-04-17T08:35:04","slug":"bitcoin-and-u-s-equities-show-early-signs-of-fading-correlation","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=22497","title":{"rendered":"Bitcoin and U.S. Equities Show Early Signs of Fading Correlation"},"content":{"rendered":"<div>\n<p>Wednesday\u2019s price action between bitcoin (BTC) and U.S. equities caught investors\u2019 attention highlighting early signs of a fading correlation between the two. <\/p>\n<p>In a typical diversified portfolio, assets are expected to show little to no correlation. For example, gold has continued to hit all-time highs, setting 12 new daily records this year, demonstrating a clear dislocation from U.S. equities.<\/p>\n<p>While bitcoin has often been labeled a leveraged play on the Nasdaq 100, recent trend suggest that relationship may be weakening.<\/p>\n<p>Take BlackRock\u2019s iShares Bitcoin Trust (IBIT), which trades only during regular U.S. market hours. On Wednesday, it closed up 0.46%, even as the Nasdaq 100 plunged more than 3% , down as much as 4.5% at one point, which would\u2019ve marked its fifth-largest point decline in history. <\/p>\n<p>Strategy (MSTR), a bitcoin-levered play included in the Invesco QQQ Trust (QQQ) finished the day up 0.30%, even as all of the Magnificent Seven tech stocks closed in the red, underscoring the growing divergence.<\/p>\n<p>Throughout the day, the correlation between bitcoin and the Nasdaq fluctuated. For instance, while Fed Chair Jerome Powell was speaking, both <a href=\"https:\/\/www.coindesk.com\/markets\/2025\/04\/16\/bitcoin-rally-short-circuited-as-fed-chair-powell-raises-stagflation-fear\" target=\"_blank\">assets dropped in tandem<\/a>. However, bitcoin later rebounded above $84,000, while the Nasdaq continued to hit new intraday lows before recovering into the close.<\/p>\n<p>Powell\u2019s comments leaned more hawkish than expected, citing inflation concerns driven by tariff uncertainty and increases, labeling them an \u201cevolving risk.\u201d Short-term inflation expectations have also moved higher.<\/p>\n<p>Markets were especially unsettled by Powell\u2019s response to the question: Is there a Fed put for the stock market? Is there a Fed put for the stock market?  <a href=\"https:\/\/x.com\/NickTimiraos\/status\/1912566217887666304\" target=\"_blank\">Powell&#8217;s reply<\/a>: \u201cI\u2019m going to say no.\u201d <\/p>\n<p>The \u201cFed put\u201d is a long-held market theory suggesting the Fed will step in to stabilize markets during sharp downturns, a safety net that bitcoin, as a bearer asset, inherently lacks. The open question now: Was Powell bluffing, or is the Fed truly stepping away from its role as market backstop?<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Wednesday\u2019s price action between bitcoin (BTC) and U.S. equities caught investors\u2019 attention highlighting early signs of a fading correlation between the two. In a typical diversified portfolio, assets are expected to show little to no correlation. For example, gold has continued to hit all-time highs, setting 12 new daily records this year, demonstrating a clear [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-22497","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/22497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22497"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/22497\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}