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Bitcoin, Stocks, and Dow Jones Show Surprising Correlation Over Long Term

  • 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.

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