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Bitcoin and S&P 500 decouple from net liquidity Bitcoin and S&P 500 decouple from net liquidity

Bitcoin and S&P 500 decouple from net liquidity

Unraveling the decoupling of Bitcoin and the S&P 500 from net liquidity and its potential impact on market dynamics.

Bitcoin and S&P 500 decouple from net liquidity

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

"An intriguing shift is happening: The long-established correlation between Bitcoin, the S&P Index, and net liquidityโ€”a key indicator of the Federal Reserve's market intervention scaleโ€”seems to be fading. But why? Despite the Fed nearly doubling its balance sheet in 2020, the U.S. financial market soared to all-time highs. Some analysts believe the Fed is no longer the main market driver, replaced by excess liquidity. But there's more...the S&P 500's performance isn't as broad-based as it appears, with a select group of tech and AI stocks leading the way. However, it's Bitcoin's decoupling from net liquidity that presents a fascinating twist..."