Bitcoin is moving differently from tech stocks, but can BTC escape the Fed’s grip?

Bitcoin may be starting to move away from its strong link with US technology stocks. In July, Bitcoin performed much better than the Nasdaq-100, showing that the cryptocurrency may now have some of its own market drivers. Bitcoin gained about 8% in July, while the Nasdaq-100 dropped nearly 7%. The different performance was a major change from the way Bitcoin and technology stocks have often moved together in recent years.

Bitcoin has become closely connected with US stocks since 2020. It has often traded like a high-risk, high-growth asset, similar to technology stocks and other “risk-on” investments. The Bitcoin-Nasdaq correlation has fallen sharply in recent months.