Bitcoin Is Set for First Yearly Split From Stocks in Decade

Core Insights - The S&P 500 has increased over 16% in 2025, while Bitcoin has decreased by 3%, marking a significant divergence from historical trends where both assets typically moved in tandem [1][3] - Bitcoin reached a record high above $126,000 earlier this year but has since experienced a downturn, dropping to $88,135, approximately 30% below its October peak [2] - The decoupling of Bitcoin from traditional risk assets is notable, especially as AI stocks and capital spending have surged, while Bitcoin has not benefited from this trend [4] Market Dynamics - Bitcoin's historical correlation with stocks has weakened, particularly during the pandemic when low-interest rates drove both markets upward [3] - The current sentiment around Bitcoin has deteriorated, with slowed inflows into Bitcoin ETFs and a lack of prominent endorsements, indicating a shift in investor interest [5] - The recent performance of Bitcoin is viewed as a correction after a period of significant outperformance compared to the S&P 500, suggesting that stocks are now catching up [6]