Bitcoin rallied toward $66,000 on Wednesday following gains in the US stock market, as cryptocurrencies attempted to reverse their 2026 slump amid renewed buying pressure from American investors.
Since Bitcoin’s correlation with traditional markets hit its weakest level since the FTX collapse in late 2022, the daily correlation coefficient between BTC price and the S&P 500 index currently stands at 0.32, while its correlation with gold sits at negative 0.45.
Bitcoin’s rebound aligned closely with similar movements in US equities, particularly AI and technology stocks. The tech-focused Nasdaq led the recovery with 1.05% daily gains, while the S&P 500 rose 0.68% and the Dow Jones Industrial Average gained 421 points to close 0.86% higher on Tuesday.
Crypto-related stocks also posted moderate gains during the session. Coinbase shares rose 1.12%, while Strategy gained 0.73% as broader market sentiment improved.
The swift recovery in US equity markets appears to have eased negative pressure on cryptocurrency investors who had been looking to reduce risk asset exposure. This shift in sentiment was reflected in the Bitcoin Coinbase Premium Index, which tracks the price difference between BTC on Coinbase and Binance.
The index flipped positive for the first time since Jan. 15, indicating that “US buyers are stepping in,” according to analyst Nic. The analyst added that the index needs to maintain positive territory to ensure sustained buying pressure continues.
The return of demand from US investors was also evident in Bitcoin exchange-traded fund flows. Bitcoin ETFs recorded $258 million in net inflows on Tuesday, marking a significant reversal from recent outflow trends.
Since late August, Bitcoin has experienced a dramatic divergence from traditional risk assets. Gold has surged 51%, the S&P 500 has gained 7%, while Bitcoin has fallen 43% during the same period, according to onchain data provider Santiment.
This marks the weakest correlation between Bitcoin and stocks since the chaos surrounding the FTX exchange collapse in late 2022. Historically, Bitcoin has frequently moved in tandem with the stock market, particularly the S&P 500, as it is often viewed as a risk asset in the short term.
“Historically, when an asset that is usually correlated breaks away in this dramatic fashion, it typically does not stay disconnected forever,” Santiment said in a recent post. The firm suggested that this unusual separation could signal significant upside for Bitcoin and alternative cryptocurrencies over the long term.
If Bitcoin returns to its historical pattern of tracking equities during economic expansions, “it may have significant room to catch up,” Santiment concluded.
Darius Sit, founder and chief investment officer of trading company QCP Capital, offered additional perspective on the divergence. He argued that the “Bitcoin vs. gold” debate is often misunderstood as a simple price contest, when “the more important driver is liquidity and market structure.”
The gap between stocks and Bitcoin “reflects position unwinds and leverage-driven flows, not a failure of Bitcoin’s longer-term narrative,” Sit explained. He added that “Bitcoin still behaves like a long-term inflation hedge and an increasingly legible form of collateral.”
Bitcoin’s institutional adoption continued to expand in 2025, with increasing acceptance by banks, merchants, public companies, and nation-states. This trend has helped confirm Bitcoin as a maturing asset class for investors, despite short-term price volatility and periodic disconnects from traditional market correlations.
The cryptocurrency’s ability to maintain levels above $65,000 despite recent market turbulence suggests growing underlying support. Market analysts are now watching whether the positive Coinbase Premium Index and renewed ETF inflows can sustain momentum in the coming sessions.
As Bitcoin attempts to consolidate gains near $66,000, traders are monitoring traditional market movements for additional cues. The simultaneous recovery in both crypto and equity markets could signal a broader shift in risk appetite among institutional and retail investors alike.
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