Bitcoin, the largest cryptocurrency, has seen its correlation with U.S. equities and Ether weaken notably in 2024. While historically regarded as a risk-on asset, with a correlation to the Nasdaq Composite reaching nearly 1:1 during 2021 and early 2022, recent data shows a drop to 0.46. This change is highlighted by the varying performance post the recent U.S. election, with bitcoin reaching new highs above $93,000, while the Nasdaq stagnated. Throughout the year, bitcoin and Nasdaq have moved together only 52% of the time. Additionally, the correlation between bitcoin and Ether also declined to 0.35, indicating a growing divergence between these two major cryptocurrencies. As bitcoin matures within the financial landscape, market dynamics suggest it may begin to trade independently of traditional risk-on assets, reflecting a more nuanced understanding of its value.

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