Bitcoin Breaks Free from Nasdaq as Correlation Suddenly Collapses

Bitcoin’s correlation with the Nasdaq has collapsed to roughly -0.20, marking one of the weakest linkages in a decade and signaling a potential regime change in how BTC trades relative to equities. Despite short-term weakness, Bitcoin was trading near $74,819 with daily volume above $42 billion and was up ~4% on the week, leaving room for further upside. The breakdown from historical correlation ranges (0.40–0.70 in 2021–22, peaking ~0.85 in late‑2022) suggests BTC may begin to follow idiosyncratic, crypto‑specific drivers rather than tech/equity risk flows. Market commentators cite historical post‑correction recoveries (≈45% over three months; up to ~370% over 12 months) as a bullish scenario if the decoupling persists, but macro liquidity and positioning still pose risks. The shift could alter hedging, portfolio allocation and risk management strategies that treated Bitcoin as a Nasdaq‑levered exposure.