Is Bitcoin Price Finally Decoupling From Tech Stocks?

Bitcoin outpaced the Nasdaq-100 in July as ETF demand returned. Is BTC decoupling from tech stocks while still remaining tied to Fed policy?

Bitcoin (

) may finally be breaking away from its longstanding correlation with technology stocks.

In July, Bitcoin dramatically outperformed the Nasdaq-100,

roughly 8% while the index fell nearly 7%.

The divergence marked a sharp departure from one of Bitcoin’s most reliable market relationships.

Since 2020, Bitcoin has become much more closely

with US equities, including the Nasdaq-100, often behaving like higher-beta, risk-on assets.

As recently as May, Bitcoin’s 90-day correlation with the Nasdaq stood at 0.89, according to TradingView data

by CoinDesk. By July 28, its shorter-term 30-day correlation had fallen to 0.43, near the lower end of its five-month range,

to K33 Research data.

Bitcoin ETF inflows flipped positive in July, contributing to favorable price action. Source: 21Shares

Analysts say crypto-specific forces are increasingly influencing Bitcoin’s price action. ETF flows, leverage, and shifts in BTC supply are giving Bitcoin independent drivers even as broader macro conditions continue to matter.

“This disconnect suggests that short-term [equity] correlations are not sufficient to explain performance when bitcoin-specific flows become the dominant driver,” NYDIG