With U.S. equities nearing fresh highs and expectations for a rate cut gathering pace, investors are reevaluating how Bitcoin (CRYPTO: BTC) fits into the broader macroeconomic landscape.
Historically considered a “risk-on” asset alongside tech stocks, Bitcoin has lately moved in tandem with traditional markets.
However, several experts believe a structural shift may be approaching, where Bitcoin’s behavior begins to reflect more of a long-term hedge than a speculative tech investment.
This potential turning point hinges on how investors interpret monetary easing, regulatory signals, and broader adoption trends.
Analysts remain divided: will Bitcoin decouple from traditional markets or continue to shadow equities through another risk-on cycle?
Speaking with Benzinga, Benjamin Grolimund, General Manager UAE at Flipster, notes that the short-term link between Bitcoin and equities remains intact.
“In the short term, Bitcoin and equities often move in tandem, classic risk-on behavior ahead of expected Fed cuts,” he said.
Grolimund also suggested that Bitcoin’s longer-term behavior may shift. “Historically, post-rate-cut cycles like 2019 and 2020 have seen Bitcoin’s beta to equities fall sharply. The narrative shifts from tech-adjacent assets to digital gold, and that changes the correlation profile …