Bitcoin's recent rise challenges conventional market behaviors, driven by various geopolitical and economic factors.
When risk turns into asset
Typically, in times of stock declines, investors flock to safe havens. However, this time around, Bitcoin started rising, breaching the $94,000 mark. The total altcoin market cap increased from $997.56 billion to $1.04 trillion in just two days.
Is Bitcoin going its own way?
Bitcoin's correlation with major stock indices has notably decreased. For instance, the 30-day correlation with the S&P 500 dropped to 0.35, while the correlation with gold increased to 0.39.
Politics, the Fed, and its fragility
The Federal Reserve and its chair Jerome Powell are facing attacks from the president, creating added uncertainty in the markets. Investors are beginning to turn to Bitcoin as a less risky alternative.
Bitcoin displays signs of independent movement against a backdrop of uncertainty in the financial system and political instability. Its recent rise may signal a shift in market sentiments.
