How does Bitcoin’s correlation with stock markets impact its price?

Bitcoin’s correlation with traditional stock markets, particularly the S&P 500 and Nasdaq, has increased in recent years. During periods of economic uncertainty, Bitcoin often moves in tandem with equities as investors shift risk exposure. However, Bitcoin also behaves as an uncorrelated asset during financial crises, attracting investors as a hedge against traditional market instability. Understanding this relationship is crucial for traders looking to diversify portfolios. By checking btc price live, investors can analyze Bitcoin’s correlation with stock market trends.