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Another day, another bitcoin rally.
After approaching last night's all-time high, Bitcoin turned red this afternoon, hovering around $108,600, a 1.4% lower in the last 24 hours.
Bitcoin's latest move is similar to what it did three weeks ago when the biggest cryptocurrency hit a shy new all-time high of $112,000. BTC exceeded around $103,000 to $110,000 in about two days.
As Noelle Acheson pointed out today Cryptography is now a macro Newsletter, Bitcoin's rally in late May coincided with a surge in short liquidation. In other words, investors had acquired BTC to cover the leveraged short positions.
With the recent short BTC liquidation being equally high, Acheson estimates that last night's run will likely be driven by leverage coverage vs new spot investors. I have to agree.
That being said, Bitcoin is often traded like a big tech stock. It's high volatility and hasn't been isolated from macroeconomic movements at least in the last few months (I dare say it).
According to Yahoo Finance data, Bitcoin's correlation with Nasdaq composite is currently 0.81. The correlation between crypto and gold has been moving negative recently, and is currently sitting at -0.07 per Yahoo Finance.
The story of “Bitcoin is digital gold” has certainly lost steam in recent years. Cryptocurrency is rising with risk appetite. Look at what happened in April: BTC lost more than 11% in the week after April 2 (Trump's so-called “liberation day”). The S&P 500 dropped out of 12%, while the Nasdaq Composite lost 13%.
Before Hodler came for me, yes, Bitcoin bounced back stronger than stocks. Since April 2nd, BTC has earned around 29%. The S&P 500 has risen by 7%, while the Nasdaq Composite has earned under 12%.
I think Bitcoin will trade on Big MacroNews (interest rate decisions, inflation data, employment reports, etc.), but I've seen it in price action, adding that the big tech companies are clearly more vulnerable to tariff policies.
Apple is down more than 17% per year. The alphabet has lost more than 5% since its launch in 2025.
Bitcoin has increased by more than 16%.
