Bitcoin’s connection to the American stock market reaches a new high level – what happens?

Bitcoin’s performance was mixed last week, as it rose to the highest new level ever in the pre -setting up on the $ 105,000 sign. While the price movement may have been somewhat slow last week, there are increasing positive morale around the leading cryptocurrency – which is missing in the first two weeks of 2025.

This recent wave of optimism led to the continued largest encrypted currency in the world in terms of market value in spreading its wings in global financial markets. It is interesting that the latest data shows that the link between the price of bitcoin and the stock market in the United States has reached a new high level.

What does the increasing link to BTC and investors mean?

In the QuickTake post on the Cryptoquant platform, an analyst in the Darkfost name open The price of bitcoin remained closely linked to the performance of the stock market in the United States. According to data from Cryptoquant, the link between Bitcoin and the Nasdak index reached the highest new level ever on Saturday, January 25.

For clarification, the Nasdaq compound index is the stock market index that tracks almost all shares listed on the Nasdaq Stock Exchange. In addition to the S&P 500 Index and Dow Jones Industrial Index, the Nasdaq index is classified as one of the most popular stock market indicators in the United States.

Source: CryptoQuant

Darkfost highlighted that the price of Bitcoin and the Nasdak index showed a strongly strong correlation in 2024, and continued in this direction in the new year. Likewise, the price of the Bitcoin and the Standard & Poor’s 500 index were closely linked last year, although there are short periods of separation.

According to QuickTake analyst, the increasing link indicates that institutional players are now more open to BTC as a asset category, which is in line with its performance with traditional market trends.

Darkvost added:

As Trump is now responsible, the expectations of reducing regulations, such as canceling SAB 121, can increase the promotion of Bitcoin’s status as a recognized assets category among institutional investors, which may speed up their approval.

The relationship between American and bitcoin markets has always been interesting, as it provides various investment opportunities. However, the strong association between these two categories of assets is a narrowing of diversification opportunities that it often provides to investors.

Bitcoin price at a glance

Until these lines, the bitcoin price is about 104,900 dollars, which reflects the lack of a large price movement during the past 24 hours.

The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView