Bitcoin News Today: Bitcoin's 80% stock market correlation hints at major price shift

Bitcoin’s 80% correlation with the stock market has raised speculation about a potential major price shift in the coming weeks. Recent analysis suggests that macroeconomic factors such as interest rate expectations, liquidity conditions, and overall risk sentiment are increasingly shaping Bitcoin’s short-term performance [1]. This trend implies that movements in equity markets could have a direct influence on BTC’s price trajectory.

Currently, Bitcoin is trading around $116,568, having recently consolidated after a recovery from a low of $112,000 [1]. Technical indicators show a Relative Strength Index (RSI) of 45.54, indicating a neutral momentum, while the Moving Average Convergence Divergence (MACD) remains slightly negative, reflecting a cautious outlook in the market.

Analysts highlight that a strong rebound in equity markets could provide a tailwind for Bitcoin. Under such a scenario, BTC may push toward the $118,500–$120,000 range in the short term [1]. A breakout above this threshold could trigger momentum buying and potentially see Bitcoin retesting the $123,000 level, previously observed in July. This would likely be supported by a recovery in indices like the S&P 500 and encouraging macroeconomic data [1].

Conversely, a bearish scenario is also possible. Should stock markets weaken or macroeconomic data raise concerns about a slowdown, Bitcoin’s high correlation could lead to amplified downside pressure [1]. A decline below $114,000 may trigger aggressive selling, with key support levels expected between $111,500 and $110,000. In a risk-off environment, Bitcoin could face downward pressure and potentially return to these levels sooner than anticipated [1].

The current correlation figure is based on a 1-week rolling metric, a measure that is inherently volatile [1]. Analysts caution that such high correlation readings typically do not persist for extended periods, suggesting that market dynamics may shift in the near term.

The growing alignment between Bitcoin and traditional equity markets underscores the increasing role of macroeconomic forces in shaping cryptocurrency trends. For traders, this development means that monitoring equity market performance may become as important as tracking crypto-specific news in the coming weeks [1]. This shift reflects Bitcoin’s evolving position as a global asset increasingly influenced by broader financial market movements.

Source: [1] Bitcoin’s 80% Stock Market Correlation Could Trigger a Major Price Move (https://coinmarketcap.com/community/articles/6895fcf405f6c41c6f2e4387/)