2025-12-31 07:20:54

Recently, this wave of market activity has been quite interesting. The Nasdaq surged strongly in December, with tech stocks taking turns to outperform, but looking at the crypto space, Bitcoin has been oscillating around $89,000, retreating about 25% from the all-time high of $126,000 set in October. This divergence indeed warrants in-depth observation.

In previous years, the correlation between cryptocurrencies and US stocks has been quite close, especially during periods of increased risk appetite. But this time, it's different. US stocks are rising, yet the crypto market hasn't kept pace, and even seems to be lagging behind. What does this reflect?

From a technical perspective, Bitcoin has been down from its all-time high for some time now, and market sentiment has been under pressure. The chain reaction of leveraged liquidations is also ongoing—when the crypto market experiences significant volatility, institutions have to liquidate other more liquid assets to maintain their positions, which further drags down the overall market performance.

This "crypto decline → asset sell-off → traditional markets affected" transmission chain is becoming increasingly evident. The once positive correlation has, at times, even reversed. Market participants need to seriously consider this change and avoid applying past logic to current market conditions.

BTC-0,47%

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BlindBoxVictim

· 13h ago

U.S. stocks and the crypto market are crashing, I really can't keep up with this pace. Where's the promised coordination? Now it's reversing. Still the same old story, margin calls and liquidations are inevitable, institutions are experts at cutting leeks. I just want to know where the bottom is...

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ChainWatcher

· 13h ago

The US stock market rises while the crypto market falls—this is indeed a bit strange, feels off. --- It's again the leverage explosion blame; institutional liquidations really drag down the entire market. --- Hanging around 89,000 for so long, do we still need to keep bottoming out? --- Decoupled? Or just short-term divergence, really hard to see through. --- Once the liquidation chain starts, it can't be stopped; this has been the pattern several times before. --- The once positive correlation is now reversed; this needs some pondering. --- I just want to know, when can the crypto market catch up with the Nasdaq's rhythm? --- Don't use past logic to justify the present; but who can clearly explain the current logic? --- From 12.6 to 8.9, a 25% retracement—this drop hurts a bit. --- Institutions selling liquid assets to maintain positions—basically, they are forced to cut losses.

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GasFeeCrier

· 13h ago

The US stock market is happy, but the crypto circle is crying. This decoupling phenomenon is really unsustainable. --- It's the same old leverage liquidation show, the classic trick institutions use to cut leeks. --- The supposed positive correlation? Now it's reversed, I really didn't see that coming. --- From 12.6 to 8.9, a 25% pullback with repeated oscillations—that's our Bitcoin. --- When the US stock market rises, why is the crypto market still falling? I really can't understand this logic. --- The transmission chain is biting itself back; it feels like the crypto circle has become the scapegoat. --- Nasdaq surges, but Bitcoin is still oscillating—definitely worth pondering. --- The old logic doesn't fit the current market conditions anymore. It's time for everyone to wake up. --- The chain reaction of liquidations is happening one after another; institutions' methods are really ruthless. --- Once hand in hand, now hurting each other—markets are really becoming more and more absurd.

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Gm_Gn_Merchant

· 13h ago

US stocks are excited while the crypto circle is indifferent; this decoupling really can't be sustained anymore. --- Once the liquidation chain reaction occurs, institutions have to cut losses, no wonder they can't keep up with the Nasdaq's gains. --- From 12.6 to 8.9, a 25% pullback—this is it? Fellow investors thought it would be even more intense. --- It seems the old script of "coins move with stocks" needs to be changed. Now, it's the falling coins dragging down other assets. Quite interesting. --- The Nasdaq takes off while the crypto circle falls behind. This divergence should have been noticed long ago... --- The chain reaction of leverage liquidations is becoming more obvious; no one can escape when institutions close their positions. --- Honestly, that correlation is gone now. When the crypto market falls, it actually signals something. --- The oscillation between 8.9 is quite uncomfortable. When will it break through? --- The transmission chain has reversed unexpectedly; it's time to change trading strategies.

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