Bitcoin vs. S&P 500: Are We In A Relationship? 📉💔

by

Well, here we are, barely weeks into the glamorous second half of 2025, and honestly, it feels like Bitcoin and the global markets have seen everything but a time-traveling unicorn. From *actual* trade wars to nations throwing tantrums (complete with serious military action—how did that even get on the agenda?), the market’s been through more drama than a reality TV show.

So, guess what? We’ve got ourselves a bit of a tango between traditional finance and crypto. Sure, the US markets and Bitcoin haven’t been co-starring like they used to, but can we all agree there’s a whiff of a connection? It’s the awkward ex-couple vibe. 😅

What Does The Falling Traditional Volatility Mean For BTC?

In a spicy little tweet storm, Joao Wedson, the big cheese at Alphractal, started dissecting the relationship between Bitcoin and the lovely S&P 500. According to him, our beloved Bitcoin seems to be playing hard to get with the CBOE Volatility Index (the VIX—sounds like a club no one wants to join) which measures how much people are, you know, freaking out about the S&P 500.

Now, for those who need a refresher: volatility is that charming quality that makes prices waltz dramatically in short bursts, serving as a *very* accurate temperature check on how everyone’s feeling these days. Wedson casually refers to the VIX as the “fear index.” Talk about moody! 😬

Wedson basically says that when Bitcoin gets all aloof and stops dancing to the S&P 500’s tune—especially during those low VIX moments—guess what? It tends to rocket off independently in the most spectacular fashion. There’s your cue for a potential price rally! 🚀

He sweetly stated:

In other words: don’t waste hours analyzing BTC vs. S&P 500 when BTC’s correlation with the VIX is low or negative — that’s usually when BTC has a higher chance of entering an explosive phase.

Wedson also gave us a choice: if the VIX is throwing a high drama fit, maybe keep your eyes on how Bitcoin interacts with US markets. Fear can be contagious, darling. But right now? The VIX is going down faster than my will to go to the gym, which means the S&P 500 isn’t much help in predicting Bitcoin’s next move.

At the end of the day, the more Bitcoin flirts with independence from traditional volatility (that VIX thing again), the stronger it becomes as its own fabulous asset. A glimmer of hope, perhaps, for Bitcoin’s price—and maybe fresh opportunities for any investors waiting in the wings! 🎉

Bitcoin Price At A Glance

As of this moment, BTC is sitting pretty at around $117,888, looking awfully serene with no significant movement in the past 24 hours. Must be meditating or something. 🧘‍♂️

Read More

2025-07-20 20:43