Bitfinex: Bitcoin may further decouple from stocks and regain its leadership position among global risk assets

ChainCatcher news, Bitfinex Alpha stated in its latest report that following last week's relatively resilient performance of Bitcoin, with a weekly decline of only 0.65%, nearly flat, and far better than traditional risk assets, it is clear that this is merely a delayed downward reaction.

Despite the BTC/S&P 500 index ratio soaring to nearly 5% below historical highs, indicating strong relative strength, the market has now seen a sell-off. We believe that stocks are becoming deeply oversold, and a short-term rebound may narrow this gap in the medium term. However, trends in short-term financing and open interest also suggest that Bitcoin is about to experience volatility.

Nevertheless, structurally, a solid foundation that performed well in the late second quarter seems to be forming. As macro volatility cools, ETF inflows recover, and sovereign narratives resurface, Bitcoin may further decouple from stocks and reclaim its leadership position in global risk assets.

Additionally, although the Federal Reserve remains cautious amid uncertain inflation dynamics, the overall situation suggests that trade policy, rather than monetary policy, may pose a greater risk to economic momentum in the coming quarters.