So far, Bitcoin has demonstrated a unique trajectory over the past weeks, distinct from broader financial movements. While global markets have been riding buoyancy, with investors embracing a more risk-on attitude following softer US inflation data, Bitcoin has charted its own path.
Bloomberg reported since the release of the US data on Tuesday, an index of global shares surged by 2% on speculation that the Federal Reserve might halt interest rate hikes and lean towards reductions in 2024. In this context, Bitcoin has seen a decline in the short term but overall gains on the longer time horizon.
This unusual behavior has resulted in a significant shift in the correlation between Bitcoin and traditional stock markets. The report read:
A 30-day correlation coefficient for Bitcoin