During Bitcoin volatility, crypto's correlation with traditional markets shifts:

Stocks (S&P/Nasdaq): Normally low correlation, but may rise during macro shocks (e.g., Fed policy shifts) as risk assets move together.

Gold: Typically inverse to BTC (gold as safe-haven, BTC as risk-on), but both can decouple if crypto-specific factors (e.g., ETF flows, halving) dominate.

Market Cap Swings: Crypto’s high beta means sharper % moves vs. stocks/gold, reducing short-term correlation.

Regime Changes: In 2022-23, crypto-stocks correlation rose due to inflation/rates; now diverging as BTC matures.

Crypto remains more sentiment-driven, while gold/stocks react to macro data.