Recent market behavior indicates a weakening correlation between Bitcoin (BTC) and U.S. equities, particularly the Nasdaq 100. As Bitcoin has often been perceived as a leveraged play on the Nasdaq, recent developments challenge this notion. For example, on a day when the Nasdaq fell more than 3%, shares of BlackRock’s iShares Bitcoin Trust recorded a modest gain of 0.46%. This divergence suggests a shift in investor sentiment, with Bitcoin possibly charting its own path amidst volatility in traditional markets. Moreover, this shift aligns with significant performance from gold, which has seen 12 consecutive daily highs, suggesting a preference among investors for safer assets over equities. Comments from Fed Chair Jerome Powell further contributed to market concerns, as he dismissed speculation about a 'Fed put'—a safety net theory suggesting the Fed would intervene during downturns, which Bitcoin, unlike equities, inherently lacks. This evolving landscape raises questions about the future relationship between Bitcoin and traditional financial assets.

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