Why bitcoin’s brutal drop from an October record high is now a crucial barometer for the broader market

Core Insights - U.S. stocks experienced a significant rebound, but Bitcoin prices continued to decline, raising concerns about the correlation between the two markets [1][2][5] Group 1: Stock Market Performance - The Nasdaq Composite avoided its worst weekly percentage-point decline since April, but still recorded a third consecutive weekly decline [2] - The S&P 500 and Dow Jones Industrial Average fell for two out of the last three weeks, indicating ongoing volatility in the stock market [2] Group 2: Bitcoin Price Trends - Bitcoin prices have dropped approximately 33% since reaching a record high of $126,272.76 on October 6, now trading at $84,535, marking its lowest level since April 18 [3][4] - This decline represents the largest pullback for Bitcoin since the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission [4] Group 3: Market Sentiment and Indicators - The correlation between Bitcoin and stock prices has been increasing, leading to concerns that Bitcoin's continued decline may signal further losses for stocks [5][6] - Bitcoin is viewed as a sentiment indicator, reflecting poor market sentiment, which could impact investor behavior moving forward [6][7]