Bitcoin is showing a notable divergence from equities in 2025, with the S&P 500 and Nasdaq posting year-to-date gains of 16% and 20.12%, respectively. In contrast, Bitcoin has fallen 36% from its peak, with its correlation to these indices reaching yearly lows of -0.299 and -0.24.
Despite this short-term underperformance, Bitcoin's five-year compound annual growth rate (CAGR) remains impressive at over 200%, significantly outpacing traditional assets. The fear and greed index indicates a shift in market sentiment, suggesting Bitcoin is increasingly being viewed as a standalone asset class.
Bitcoin Diverges from Equities as S&P 500 and Nasdaq Rise in 2025
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