Bitcoin's correlation with traditional stock markets has been a topic of growing interest. Historically, Bitcoin was viewed as a decentralized asset, uncorrelated with stocks, offering diversification. However, recent trends show increasing alignment, especially during macroeconomic shifts. In 2022, Bitcoin’s price movements mirrored the S&P 500, driven by inflation fears and Federal Reserve rate hikes. Data suggests a correlation coefficient between Bitcoin and stocks rose from near-zero in 2019 to over 0.6 in 2023, reflecting shared investor sentiment and risk appetite. Yet, Bitcoin’s volatility—often exceeding 50% annually—contrasts with the S&P 500’s 15-20%, highlighting its unique risk profile. While stocks react to earnings and policy, Bitcoin is swayed by regulatory news and adoption rates. This evolving relationship suggests Bitcoin is maturing but remains a hybrid asset, blending speculative and safe-haven traits.