Bitcoin Underperforms S&P 500 by About 26 Percentage Points Year-to-Date, Correlation with Risk Assets Weakens

Odaily: Bitcoin's correlation with traditional risk assets is weakening. Year-to-date, Bitcoin has fallen about 16% cumulatively, while the S&P 500 has risen about 10%; over the past month and the past six months, Bitcoin has also underperformed U.S. equities. Market analysis suggests that AI-related investments and some small-cap stocks are more attractive to risk capital, while the high-yield environment, the aftermath of the previous large-scale crypto market liquidation, and the record-breaking hack at Binance may all be putting pressure on Bitcoin demand. Market sentiment is currently cautious, and Bitcoin may face a new round of downside pressure.