- Bitcoin’s correlation with the S&P 500 has dropped to zero, signaling its independent market movement.
- Over half of Americans now prefer Bitcoin over stocks and gold, with Gen Z investing as early as age 22.
Bitcoin has once again demonstrated startling movements. Its correlation with the S&P 500 index has broken this time; the correlation figure comes out to be zero. This shift suggests that the largest digital asset globally is now acting independently, deviating from the trend of traditional stocks. This last happened on November 5, 2024, right before Bitcoin surged past $100,000.
Bitcoin’s correlation with the S&P 500 has dropped to zero, indicating no current linkage between the two.
The last time we saw such a low correlation was on November 5th, 2024, just before Bitcoin soared past the 100k mark. pic.twitter.com/18lgW1zOql
— IntoTheBlock (@intotheblock) February 17, 2025
Shifting Sentiments: Investors Rethink Traditional Assets
According to the WSJ report, the stock market itself is currently showing signs of excessive speculation after experiencing a long bull market. Indeed, steady economic development has driven the S&P 500 to set multiple records several times. Still, within this hope, a new dynamic has surfaced that casts uncertainty.
Speculative behavior in assets, including meme stocks, options, even cryptocurrency, is rising. This indicates how gradually investors stance about traditional assets are shifting.
Breaking Away: Is Bitcoin Finally Standing Alone?
Looking back, with a number approaching 83%, Bitcoin still had a high association with the S&P 500 in December 2024. Many observers at the time thought of Bitcoin as a dangerous asset, following swings in the stock market. Now, with the correlation gone, the major issue becomes: Is Bitcoin becoming a really stand-alone asset?
Younger Generation Turns to BTC
On the other hand, a CNF report uncovers fascinating information on investors’ evolving behavior in the United States. About 52% of the population of the nation currently choose Bitcoin over gold and stocks, more than half of them.
The younger generation, especially Gen Z, even started investing in Bitcoin at an average age of 22. Meanwhile, millennials started entering the digital asset market at the age of 29.
Bitcoin and Changing Investment Patterns
This shift in taste most certainly had no logic behind it. Over the past few years, bitcoin has grown to be a major topic of discussion in the world economy. From a once-considered speculative asset, it is currently the major alternative for portfolio diversification.
Fascinatingly, 60% of American crypto asset owners intend to boost their investment by 2025. This phenomenon reminds us of the shifting societal coffee consumption habit. Coffee was solely thought of historically as a standard morning beverage. Nowadays, it is a part of the modern way of life since coffee shops abound on every side of the city.
The Future of Bitcoin: A New Era or Temporary Shift?
But, uncertainty still hangs in the air. Bitcoin continues to move in a market full of speculation, even with its correlation to the S&P 500 now gone. Its price still reacts to global events, government decisions, and shifting investor sentiment.
On the other hand, especially among the younger generation who are more tech-savvy, the possibility for higher adoption of Bitcoin still appeals in and by itself.
Perhaps in terms of market movements, Bitcoin is no more the “twin brother” of the S&P 500 presently. Does this suggest, then, that Bitcoin has really grown and is prepared to be the “digital gold” promised thus far?
