{"id":1038,"date":"2026-02-25T23:14:55","date_gmt":"2026-02-25T23:14:55","guid":{"rendered":"https:\/\/blog.coinsignals.net\/?p=1038"},"modified":"2026-02-25T23:14:55","modified_gmt":"2026-02-25T23:14:55","slug":"bitcoins-weakest-stock-correlation-since-ftx-collapse-raises-concerns","status":"publish","type":"post","link":"https:\/\/blog.coinsignals.net\/index.php\/2026\/02\/25\/bitcoins-weakest-stock-correlation-since-ftx-collapse-raises-concerns\/","title":{"rendered":"Bitcoin\u2019s Weakest Stock Correlation Since FTX Collapse Raises Concerns"},"content":{"rendered":"\n
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Bitcoin is showing its poorest relative performance against equities since the turmoil surrounding the FTX collapse in 2022. Since late August, BTC has diverged sharply from traditional markets, breaking away from its long standing tendency to move in line with stocks.<\/p>\n\n\n\n

Historically, Bitcoin has often tracked the S&P 500, rising during periods of economic expansion and loose monetary policy, and falling during tightening cycles or heightened risk aversion. In 2021 and parts of 2024, crypto and equities rallied together. Conversely, during aggressive Federal Reserve rate hikes in 2018 and 2022, both markets declined in tandem. One of the clearest examples came in November 2022, when rising rates and the FTX collapse sent Bitcoin down to around 15,700 dollars, far underperforming equities.<\/p>\n\n\n\n

Over the past six months, however, the pattern has shifted. Since late August, gold has climbed 51 percent and the S&P 500 has gained 7 percent, while Bitcoin has dropped 43 percent. This has produced the weakest correlation between BTC and stocks since late 2022. Instead of moving alongside equities, Bitcoin has significantly lagged as traditional markets remained relatively stable and gold surged.<\/p>\n\n\n\n

Santiment noted that such sharp deviations from established correlations rarely persist indefinitely. Market rotations tend to occur as sentiment and macro conditions evolve, redirecting capital flows. If Bitcoin eventually resumes its historical tendency to track equities during economic expansions, especially in a scenario involving potential rate cuts in the second half of 2025, there may be room for BTC and altcoins to recover lost ground.<\/p>\n\n\n\n

In the near term, bearish pressure remains evident. Bitcoin briefly climbed above 66,000 dollars on Wednesday before settling back above 65,000 dollars. Futures market data shows funding rates largely negative in the 62,000 to 68,000 dollar range, signaling persistent short bias.<\/p>\n\n\n\n

CryptoQuant also cautioned that a definitive bottom may not yet be in place. Short term holders have been selling at a loss for nearly 30 consecutive days, and several large sell offs have been absorbed without sparking a sustained rebound. Recent price bounces appear to be providing exit liquidity rather than marking a structural reversal. A more convincing recovery would likely require short term holder profitability to turn positive and remain stable.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin is showing its poorest relative performance against equities since the turmoil surrounding the FTX collapse in 2022. Since late August, BTC has diverged sharply from...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1038","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/comments?post=1038"}],"version-history":[{"count":1,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1038\/revisions"}],"predecessor-version":[{"id":1040,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1038\/revisions\/1040"}],"wp:attachment":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/media?parent=1038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/categories?post=1038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/tags?post=1038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}