- Bitcoin surged above $66,000 on Wednesday, following a recovery in the US stock market.
- Bitcoin ETFs saw over a quarter-billion dollars in inflows as the Coinbase Premium Index turned positive.
- The correlation between Bitcoin and assets like stocks and Gold is at its lowest since 2022, a condition that has historically preceded significant price upside.
On Wednesday, Bitcoin rallied toward $66,000, recovering in tandem with a strong rebound in US equity markets and aiming to halt its extended 2026 slump.
The tech-focused Nasdaq led stock gains, while crypto-related stocks like Coinbase and MicroStrategy also rose.
This market alignment appears to have eased pressure on crypto investors, as evidenced by the Bitcoin Coinbase Premium Index flipping positive. Analyst Nic said this means US buyers are stepping in.
Consequently, US spot Bitcoin ETFs recorded $258 million in net inflows.
Meanwhile, the daily correlation between Bitcoin and the S&P 500 has weakened significantly, hitting its lowest point since late 2022, according to Santiment.
The data provider noted that when typically correlated assets diverge this dramatically, it does not last forever. Santiment concluded, “In the long term, this unusual separation actually argues for significant upside for Bitcoin and altcoins.”
This view was echoed by QCP Capital‘s Darius Sit, who argued the current divergence reflects position unwinds rather than a narrative failure. Sit added, “Bitcoin still behaves like a long-term inflation hedge and an increasingly legible form of collateral.”
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