Bitcoin’s price had a mixed performance last week, at one point reaching a up-to-date all-time high before stabilizing around the $105,000 level. While price action may have been a bit sluggish last week, positive sentiment is building around the major cryptocurrency – something that was missing in the first two weeks of 2025.

This recent surge of optimism has seen the world’s largest cryptocurrency by market capitalization continue to spread its wings in global financial markets. Interestingly, the latest data shows that the correlation between the price of Bitcoin and the stock market in the United States has reached a up-to-date high.

What does rising correlation mean for BTC and investors?

In a Quicktake post on the CryptoQuant platform, an analyst nicknamed Darkfost revealed that the price of Bitcoin remains closely linked to the performance of the US stock exchange. According to CryptoQuant data, on Saturday, January 25, the correlation between the BTC price and the NASDAQ index reached a up-to-date all-time high.

To be clear, the NASDAQ Composite is a stock index that tracks the value of almost all stocks listed on the Nasdaq exchange. Along with the S&P 500 and the Dow Jones Industrial Average, the NASDAQ is one of the most popular stock indexes in the United States.

Source: CryptoQuant

Darkfost highlighted that Bitcoin price and the Nasdaq index have historically shown a mighty correlation in 2024, continuing this trend in the up-to-date year. Similarly, the price of BTC and the S&P 500 Index were closely related last year, even though there were brief periods of separation.

According to the Quicktake analyst, the rising correlation suggests that institutional players are now more open to BTC as an asset class, aligning its performance with established market trends.

Darkfost added:

With Trump now in office, expectations for relaxed regulations such as the repeal of SAB 121 could further strengthen Bitcoin’s position as an established asset class among institutional investors, potentially accelerating its adoption.

The relationship between Bitcoin and US stock markets has always been intriguing because they provide a variety of investment opportunities. However, the mighty correlation between these two asset classes is believed to limit the diversification opportunities they often offer to investors.

Bitcoin price at a glance

At the time of writing, BTC is trading around $104,900, reflecting no significant price changes over the past 24 hours.

The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView