The correlation between Bitcoin and the S&P 500 index has risen to 0.88, indicating that the two markets are once again in sync. This change marks a reversal of the divergence trend that has occurred since Trump's election, when Bitcoin rose by 47% while the S&P 500 only increased by 4%. 📈

Bitwise's Head of Research for Europe, Andre Dragosch, pointed out that this return to correlation is mainly influenced by macroeconomic factors, including adjustments to the Federal Reserve's interest rate cut predictions and the strengthening of the dollar. These factors exert pressure on both the cryptocurrency and traditional markets. Despite Bitcoin having strong on-chain support, its performance is still impacted by broader market trends and may face risks in the short term. 🔍