Bitcoin (BTC) Is Leaving Its Traditional Associations with Traditional Stock Markets Behind

Bitcoin is leaving the traditional associations it had with traditional stock markets behind, a latest Citigroup analysis suggests. The virtual currency displayed uncharacteristic stability in latest episodes of financial shock, making experts reconsider incorporating it into investor portfolios.

Citigroup's latest analysis suggests that Bitcoin is gradually leaving behind the traditional associations it had with major stock markets. A glance at how the virtual currency displayed uncharacteristic stability in latest episodes of financial shock has experts mulling over including it into investor portfolios.

Bitcoin Outperformed S&P And EuroStoxx Indexes On A Volatility-Adjusted Basis

Bitcoin has outperformed both the S&P and EuroStoxx indexes on a volatility-adjusted basis, according to Citigroup analysts. As the world watched closely to see how the cryptocurrency would respond to a series of economic events in 2024, it seems the digital asset has emerged largely unscathed.

Matthew Sigel, head of Digital Assets Research at VanEck, highlighted the report's conclusions regarding Bitcoin's consistent performance throughout major market events.

The digital currency has outperformed price expectations derived from macroeconomic variables by more than 10% since the beginning of March, indicating what could be a risk premium independent of normal market forces.

“Bitcoin’s performance during certain financial-stress periods – ie, SVB turmoil, Sept 23 US bond term-premium rise, and recent market volatility – warrants attention as a potential indicator of its maturing adoption and purpose as an asset class.” – Citi pic.twitter.com/8ixp44fg3T

— matthew sigel, recovering CFA (@matthew_sigel) April 25, 2025

As Silicon Valley Bank went bust in March 2023, Bitcoin prices remained above $21,000 and closed the month going above $28,000 during the time traditional investments went down. Later, in September 2023, when US bond term premiums were going up, Bitcoin opened at nearly $25,000 and closed at just above $26,000. These instances show how Bitcoin can remain stable when financial markets become turbulent.

Most recently, US President Donald Trump's tariff announcements have triggered market volatility that saw Bitcoin drop below $75,000. However, the digital currency rebounded quickly, going above $90,000 again and outperforming old-school stocks. Bitcoin is still the best-performing asset since the November US election despite recent market volatility.

Bitcoin ETF Money Flows Remain Strong Despite Market Jitters

As per the Citigroup report, funds entering Bitcoin ETFs have remained stable, while investors are pulling out of Ethereum ETFs. CryptoQuant explained that institutional players, not retail buyers, appear to be behind Bitcoin's increasing prices. The analysts cited ETF flows and interest in futures markets as key drivers of recent price action.

Both on-chain and off-chain indicators paint a mixed picture of Bitcoin's situation. Citigroup says the overall stablecoin value continues to rise solidly, even during turbulent times. Ethereum's main chain usage has increased, but activity is waning on Layer 2 leverage. The same goes for activity on the Bitcoin network: intermittent burst activity.

Some analysts believe these factors indicate that Bitcoin is forming its individual market behavior, partially influenced by a recovering gold market and a weakening US dollar. Investor dollars into the Bitcoin ETF have remained stable during downturns, leading some to speculate that institutional investors are developing a different view of the cryptocurrency than they have held historically.