TechFlow news, January 8 — According to CoinDesk, data shows the correlation between Bitcoin and the S&P 500 index has rebounded to 0.88, indicating renewed synchronization between the two markets and marking a shift from their previous divergence (since Trump's election, Bitcoin has risen 47% while the S&P 500 has increased only 4%).
Andre Dragosch, Bitwise's Head of European Research, attributes the re-emerging correlation to macroeconomic factors, including the Federal Reserve's revised rate-cut forecasts and a stronger U.S. dollar, which continue to pressure both cryptocurrency and traditional markets. Despite Bitcoin's strong on-chain fundamentals, its price movements are increasingly influenced by broader market trends, suggesting potential short-term risks ahead.
