BTC surges 3% while gold correlation gap hints at 'major rally potential'
BTC's inability to mirror recent advances in equities and gold during the past half-year could trigger a catch-up surge as Bitcoin price recovers toward $65,000.
Bitcoin (BTC) pushed higher toward the $66,000 level following positive momentum in US equity markets on Tuesday, as digital assets attempted to reverse their downward trajectory in 2026.
Key takeaways:
- Bitcoin climbed past $66,000 during Wednesday's session, bouncing back in sync with American equities.
- The Bitcoin Coinbase Premium Index turned positive following $258 million in spot ETF capital inflows.
- Despite BTC's correlation with equities and gold hitting its lowest point since 2022, historical patterns suggest substantial gains when correlation normalizes.
BTC price bounces back alongside American equity markets
The rebound in Bitcoin's value today is tracking similar upward movements across US stock indices, with technology and artificial intelligence shares driving broader market gains.
The technology-heavy Nasdaq index spearheaded Tuesday's rebound posting 1.05% gains for the day, while the broader S&P 500 index advanced 0.68%. The Dow Jones Industrial Average secured a 421-point increase, finishing Tuesday's session 0.86% in positive territory.
Stocks tied to the cryptocurrency sector experienced modest appreciation, with digital asset exchange Coinbase (COIN) adding 1.12% and corporate Bitcoin accumulator Strategy (MSTR) climbing 0.73%.
The rapid turnaround in American stock markets seems to have contributed to reducing downward pressure on cryptocurrency investors who were considering reducing their exposure to risk-oriented assets.
This shift is demonstrated by the Bitcoin Coinbase Premium Index, an indicator measuring the price differential for BTC between Coinbase and Binance exchanges, which has turned positive for the first time since Jan. 15.
This indicates "US buyers are stepping in," noted analyst Nic in a Wednesday post, emphasizing that the metric must remain in positive territory to maintain ongoing purchasing momentum.
The resurgence of American market demand was further confirmed by Bitcoin ETF activity, which registered $258 million in net inflows during Tuesday's trading session.
Bitcoin correlation disconnect unlikely to persist: Experts
Bitcoin, typically categorized as a risk-on asset over shorter timeframes, has historically demonstrated synchronized movement with equity markets, especially the S&P 500.
The last six months have witnessed an extended period where this typical correlation has fractured. The current daily correlation coefficient reading between BTC price action and the US benchmark S&P 500 index stands at 0.32, while showing -0.45 with gold.
"Since late August, gold has surged +51%, the S&P 500 has gained +7%, and Bitcoin has fallen -43%," blockchain analytics provider Santiment stated in a recent X platform post.
This represents the most extreme correlation breakdown between Bitcoin and traditional equities since the FTX collapse and market turmoil in late 2022.
"Historically, when an asset that is usually correlated breaks away in this dramatic fashion, it typically does not stay disconnected forever," Santiment explained, further stating:
"In the long term, this unusual separation actually argues for significant upside for Bitcoin and altcoins."
Should Bitcoin reestablish its traditional pattern of mirroring equity performance during phases of economic expansion, "it may have significant room to catch up," Santiment determined.
This perspective received support from Darius Sit, founder and CIO of trading firm QCP Capital, who contends that the "Bitcoin vs. gold" debate is frequently misinterpreted as a price competition, when the "more important driver is liquidity and market structure."
The performance gap between equities and BTC "reflects position unwinds and leverage-driven flows, not a failure of Bitcoin's longer-term narrative," Sit explained, further adding:
"Bitcoin still behaves like a long-term inflation hedge and an increasingly legible form of collateral."
As previously documented by Cointelegraph, Bitcoin's acceptance among institutional players, financial institutions, payment processors, publicly traded corporations, and sovereign nations expanded significantly in 2025, solidifying its status as an established asset category for market participants.