Bitcoin's Bullish Clue: Why Investors Are Rebalancing Toward BTC

British financial data provider CF Benchmarks has announced an updated Bitcoin (BTC) forecast, signaling a potential rise in the digital asset’s price amid renewed historical correlations with broader market trends. The firm, which provides benchmark rates for over 60 financial instruments, has observed a convergence of macroeconomic indicators and behavioral patterns that suggest a bullish trajectory for BTC in the near term.

According to CF Benchmarks' analysis, the recent correlation between Bitcoin and traditional asset classes—such as equities and commodities—has strengthened, particularly during periods of heightened global market volatility. The firm noted that the 30-day correlation between BTC and the S&P 500 has exceeded 0.75, a level not seen since late 2020. This development suggests that Bitcoin is increasingly being viewed as a strategic asset rather than a speculative one, with institutional adoption continuing to grow.

The firm also highlighted the role of U.S. monetary policy in shaping BTC’s outlook. With the Federal Reserve signaling potential rate cuts in the second half of the year, CF Benchmarks expects a corresponding loosening of liquidity conditions, which historically have supported risk-on sentiment and asset price appreciation. "Bitcoin, as a non-yielding but highly liquid asset, is likely to benefit from the same tailwinds as equities and other speculative assets," a spokesperson from CF Benchmarks stated.

In addition to macroeconomic signals, CF Benchmarks pointed to behavioral data showing a marked shift in investor positioning. Retail and institutional investors alike have been rebalancing portfolios to include greater exposure to BTC, particularly as real interest rates remain negative and inflationary pressures persist. The firm’s data shows that BTC's 14-day relative strength index (RSI) has remained above the neutral 50 level for more than 20 consecutive trading days, a technical indicator of sustained buying pressure.

Despite the positive outlook, CF Benchmarks emphasized that the forecast should be interpreted as a signal rather than a definitive prediction. The firm noted that while historical correlations provide a useful framework, they are not immune to disruption in the face of unexpected global events or regulatory shifts. "Markets remain dynamic, and while the correlation environment supports a constructive outlook, investors should remain vigilant and diversified," the spokesperson added.