Bitcoin, U.S. stocks, and Dow Jones demonstrate a surprising correlation over the long term, following a similar upward trajectory from mid-2020 to early 2025.
Bitcoin, though more volatile, has largely moved in the same direction as U.S. equities and the stock market's expansion.
Key takeaways highlight Bitcoin's alignment with stocks from July 2020 to January 2025, outpacing stocks in gains during bull markets but experiencing dips during stock market corrections.
The convergence suggests Bitcoin is increasingly viewed as a macro asset, influenced by factors like monetary policy, inflation, and investor sentiment, similar to stocks.
As U.S. equities reach new highs, Bitcoin may benefit from institutional flows and economic optimism as long as risk appetite remains high.
Many analysts anticipate Bitcoin's price could see further growth in 2025 if U.S. market strength persists, supported by its relative correlation with stocks.